1/ I'm beginning to wonder if there's a poll I can put up where $AMZN doesn't come out on top.
I'm long all 4 of these companies, and all are larger positions. Not sure how I would rank them, but believe they will all beat the market over next several years. $FB $GOOG/L $MSFT
I'm long all 4 of these companies, and all are larger positions. Not sure how I would rank them, but believe they will all beat the market over next several years. $FB $GOOG/L $MSFT
2/ Over last three years, all have beaten the market, even $FB with the myriad of problems it has faced. 
3/ As I've said many times, revenue growth is the first thing I look at for any investment.
Of these companies, $FB has shown the strongest rev growth, incredibly high for a company its size.
None of these tech giants though are doing too shabby.
Of these companies, $FB has shown the strongest rev growth, incredibly high for a company its size.
None of these tech giants though are doing too shabby.
4/ What about earnings growth? Great thing about all four of these companies is they have that in spades.
What stands out is $AMZN's growing ability to expand its margins. With that revenue base, earnings can really explode with even a little leverage.
What stands out is $AMZN's growing ability to expand its margins. With that revenue base, earnings can really explode with even a little leverage.
5/ Free cash flow yield equals the free cash flow per share divided by the current share price.
Not often in these comparisons do we find the company growing the top-line the fastest w/ a relatively attractive valuation, yet that's exactly what we have w/ $FB.
Not often in these comparisons do we find the company growing the top-line the fastest w/ a relatively attractive valuation, yet that's exactly what we have w/ $FB.
6/ $GOOG/L is most attractively valued by P/E ratio, though $FB and $MSFT are valued fairly similarly. $AMZN looks most expensive again, though it has also come down considerably in recent years as its earnings have exploded.
7/ I'm not sure how helpful this is for these companies, but by P/S ratio $AMZN is the cheapest and $MSFT the most expensive.
8/ You can't just look at growth and valuations though, you have to look at margins too.
Due to its e-commerce operations, $AMZN is expected to have much lower gross margins. What's incredible is how high $FB's margins are.
Due to its e-commerce operations, $AMZN is expected to have much lower gross margins. What's incredible is how high $FB's margins are.
9/ Of course, $FB's operating margins have crashed in last few years, as it has had to hire moderators, comply with regulations, and pay out hefty fines.
If $AMZN can just realize a 6% - 7% operating margin, its earnings will explode.
If $AMZN can just realize a 6% - 7% operating margin, its earnings will explode.
10/ Let me throw out one more reason I'm long $AMZN, $FB, $GOOGL, $MSFT: They all hold billions in cash. No matter how long this shutdown lasts, not only can these companies survive, but they might even be able to take advantage of rare opportunities.
11/ This is just a quick look at these companies, but one can already see why I like these companies: High margins, growing revenue, and reasonably valued (at least I believe they are).
12/ Of course, much more work should be done before investments are made. Investors should always look at companies' business models, consider economic moats, and explore future growth opportunities.
Oh, because I forgot and before I get all the questions, all charts and data from @ycharts! Great tool for this type of analysis!
