Apple Vs. Amazon: Which Should You Own?

I've long been an Apple (Nasdaq: AAPL) bear. But we're all capable of change.

When AAPL fell more than 40% to just under $400, the forward price-to-earnings (P/E) ratio fell to barely 10 and the dividend grew to just over 3%. The stock suddenly made sense from an investment standpoint, and I began including it in client portfolios.

Similarly, I was the lone Android user in a house full of iPhone users. But when my contract expired a few weeks ago and my carrier offered me a free iPhone 4S, I became an adopter (if not a fanboy).

Having used an Android device for a few years, I used Amazon.com's (Nasdaq: AMZN) cloud music player and built a decent cloud library. When I switched to the iPhone and downloaded the Amazon cloud app, I was immediately bombarded by offers from Amazon to buy MP3 albums from my favorite artists at $5 a pop. Continue reading "Apple Vs. Amazon: Which Should You Own?"

From Books to Everything Else

When Jeff Bezos was searching for a name for his new internet start-up back in 1994, he wanted something that was impressive and sounded big. You see, Jeff wanted to sell books at a discount on the Internet and size to Jeff was important. He believed that his small start-up in time, could effectively become a category killer for the likes of Barnes and Noble and Borders.

The name Jeff eventually decided on for his new start-up was Amazon (NASDAQ:AMZN), and like the mighty Amazon itself, whose mouth is growing an average of two meters every year, Jeff wanted volume. So what better name to choose since by volume, the Amazon River is the world’s largest river.

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So what are you waiting for? Let's get started right away!

From books to everything else, Amazon (NASDAQ:AMZN) has become a juggernaut in the marketplace and now dominates sales on the internet. Jeff had all the stars aligned with his new company, the right name, the right concept and the right timing back in 1995 when Amazon opened its website for business.

Now CEO Jeff Bezos was not looking for quick profits or to flip his company, rather Amazon's goal was to grow free cash flow, basically cash from operations less all other charges. That is the key distinction for Amazon and one that separates it from other Internet and earnings-driven companies. As one Wall Street-er said, "Earnings are an opinion; cash is a fact."

Kudos to you Jeff, and thank you for providing a great stock to trade with our Trade Triangles.

Today, we will be analyzing the stock of Amazon (NASDAQ:AMZN) in detail. The video runs about 2 minutes.

Enjoy the video, and every success in your own trading.

Adam Hewison
President, INO.com
Co-Creator, MarketClub