These nine bar charts lay out the stock fundamentals for Apple, Amazon, and Google. Any analyst that follows these companies surely is familiar with all of these. They tell a strong story. Certainly not definitive, but hard to ignore.
To me, the most interesting of the nine is the price/earnings ratio (AKA, P/E Ratio). The higher that number, the more speculative the stock. A stock with a proven track record will have proven earnings and the ratio of the stock price to those earnings will be lower.
Let’s take a look at the relative P/E ratio of these three stocks:
- Apple: 14
- Google: 30
- Amazon: 1,436
I am amazed when I see an analyst paint Apple with doom and gloom and, at the same time, pile the accolades at Amazon’s feet. I’m not bashing Amazon. On the contrary, I think Bezos is a smart cookie and I appreciate his expansionist approach. But at the same time, it is certainly fair to say that Amazon is a speculative stock by comparison to Apple.
Look at the nine charts. Good food for thought.