3 ms·
I would probably go with AAPL. AMZN is currently trading at over 3,000 times earnings; their forward P/E is in the 150 range. They are mainly an online retailer
by yannickt 14y ago
I would probably go with AAPL. AMZN is currently trading at over 3,000 times earnings; their forward P/E is in the 150 range. They are mainly an online retailer, and retail and high profit margins usually don't go hand in hand. I expect them to grow, but it's hard for me to imagine a plausible scenario in which their growth matches their current valuation.
Also, Apple pays dividends, and they have enough cash to operate for 1-5 years on zero sales. They are better positioned (IMO) to reinvent themselves without being rushed, and at the same time minimize the potential negative impact of that reinvention to their shareholders.