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WHAT IS BETTER INVESTMENT? Apple, Google, Facebook or Amazon. which stock offers the best forecasted medium term to long term gains?
9 Answers
None. All tech giants are overvaluated, their stock prices are 5 to 10 times more than they should be. You can expect a crash in the next few years.
I agree with you: all tech giants are overvaluated, their stock prices are 5 to 10 times more than they should be. You can expect a crash in the next few years. Don't buy their stock because they suck.
Amazon and Facebook aren't getting any attention from me until their profits start to justify the multiples they're trading at. That leaves Google and Apple. It's my belief that investors will pile into Apple if Apple can find a method to spend that money on a potentially very profitable vision, and to communicate that vision to investors.
What I like about Google is its continuing growth, increasing financial discipline, operating profitability and the fact it has enough "future bets" through its moonshot initiatives that some of them will likely pan out into very profitable businesses. At some point within the next few years, the growth will need to stabilize somewhat, and then we'll likely see dividends turning this into a more stable longer-term holding.
I'll hold onto my Google shares which continue to hold up well even in the current volatile market.
Facebook and Amazon are trading way too high for their percentages. No dubt: invest in Google stock.
Why?
Google has is their cash cow- search. They are using that cash to fund new innovative future businesses (self driving cars, ai, life sciences etc) basically becoming a VC with the best in-house scientists and engineers on the planet. This move became more transparent with the corporate reorganization under the Alphabet moniker. See some of the cost cutting measures and the recent stock buyback instituted by their new CFO.
These long-tail bets will now have more transparency and corporate governance, making spending smarter and more oriented towards real profits. These projects will eventually bear fruit 10, 20 years down the line and keep Alphabet(Google) relevant for decades to come. I have not seen the same future focus from Apple, although I think they are a great and well run company.
The question to me, is when will Google finally make a solid product or service that people use (outside of their search)? I don't see one on the horizon.
Forget trying to pick one. Buy the NASDAQ in the form of QQQ, which lets you buy the NASDAQ as a stock. it has those stocks in it, and if you are young enough don't worry it will do well over the long run. If you are looking for a little more bang for your buck put some in the leveraged QQQs. Short term TQQQ can cost you, but over time it can be stellar. Check it out on a chart over any time period you choose.
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