My Top Four Internet Stocks for Years to Come
Since its debut in the early 90s, the Internet sector has become probably the top discovery and investment opportunity since the computer and microchip.
My four stock pillars of the Internet sector, which I feel will be the top stocks going forward for years to come, include The Priceline Group Inc. (NASDAQ/PCLN), Facebook, Inc. (NASDAQ/FB), Google Inc. (NASDAQ/GOOG), and Amazon.com, Inc. (NASDAQ/AMZN). All four stocks are tops in their respective areas and offer an investment opportunity at this time.
I have talked about Google, Facebook, and Priceline as an investment opportunity in the past, so today I’m going to talk about the investment opportunity that Amazon.com has to offer. This stock has made millionaires out of many investors in the stock market. Think back to May 16, 1997, when Amazon.com closed at $20.75. I kind of wish I had taken the investment opportunity then and put my $40,000 in Amazon.com stock instead of my SUV. That money would now be worth around $600,000, with the stock now trading above $330.00 a share.
Chart courtesy of www.StockCharts.com
But there is always an investment opportunity surfacing in the stock market. You just need to be able to recognize it. This is what makes investing and trading such a dynamic and intriguing process.
As far as Amazon.com, despite the superlative rise in the price, I still feel the stock has plenty of upside potential going forward as an investment opportunity; albeit, as in the case of my other three top Internet stocks, the easy money has already been made.
Now, while Amazon.com looks expensive, trading at 103 times (X) its estimated 2015 earnings per share (EPS) along with a massive price-to-earnings growth (PEG) ratio of 6.71, the company continues to look at ways of growing, which makes it a possible investment opportunity.
Last week, Amazon.com launched its first foray into the smartphone market with its “Fire” phone, which offers 3D (three-dimensional) capabilities when looking at some pictures. The phone has many gimmicks that make it different from all the “iPhones” and Samsungs of the world.
The Fire likely won’t make Apple Inc.’s (NASDAQ/AAPL) CEO Tim Cook shiver, but it does allow Amazon.com another product and revenue stream, and a way to showcase all of its apps and services. The Fire has access to more than 100 million items on Amazon.com, including movies, TV episodes, songs, and products. Amazon.com also offers more than 240,000 apps and games for many phones around the world in more than 200 countries.
It’s clear Amazon.com wants to challenge Apple, and in my view, Amazon.com is a better investment opportunity at this time. The company is pursuing an aggressive online selling strategy to expand its business into nearly every facet where money can be made. The company is going against Netflix, Inc. (NASDAQ/NFLX) and Hulu in the video steaming business. It is also testing its online grocery business, “AmazonFresh,” which is currently available in New York City, Los Angeles, and Seattle.
The bottom line is that I would not bet against Amazon.com CEO Jeff Bezos and what he has up his sleeve for the company as one of my top four Internet stocks.