Better Buy: Amazon.com, Inc. vs. NVIDIA
It may seem odd to compare Amazon.com (NASDAQ: AMZN) and NVIDIA (NASDAQ: NVDA). The two aren’t competitors and don’t share many business pursuits. Amazon is, of course, THE giant of the e-commerce world and NVIDIA makes the majority of its money selling graphics processors for the gaming market. But both companies are delivering strong returns for their investors and are making big investments in new markets that should continue to pay off for years to come. For those reasons, it’s worth comparing to the companies’ competitive advantages, finances, and current valuation to determine which is the better long-term play for investors. So let’s take a look: Image source: Getty Images. Competitive advantage One of Amazon’s key competitive advantages is the company’s e-commerce platform size of hundreds of millions of products and its Prime Membership subscribers. Amazon has an estimated 80 million Prime subscribers that pay about $99 per year to receive free, two-day shipping, free music streaming, Amazon Prime Video, and other services and discounts. The company’s vast e-commerce platform, paired with its Prime members, has proved to be a winning combination for the company. Research shows that Prime members spend about twice as much on Amazon’s platform than non-Prime members. Those…
Link to Full Article: Better Buy: Amazon.com, Inc. vs. NVIDIA
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