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Shares of Amazon AMZN and Google parent Alphabet Inc. GOOGL have improved their performance in Q3. Yet, Amazon and Alphabet remain two of the strongest companies in the world. So, let's see which stock, AMZN or GOOGL, looks like a better long-term buy at the moment.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Amazon Q3 Overview "data-reactid =" 32 ">Amazon Q3 Overview
Amazon's quarterly revenues climbed by 29% from $ 43.7 billion in the year-ago period to $ 56.6 billion. This, however, fell short of the Zacks Consensus Estimate of $ 57.06 billion.
The top line Amazon.com | This could be more than 40% growth when you pull in over $ 50 billion a quarter. With that said, Amazon posted a quarterly earnings of $ 5.75 per share. This destroyed our $ 3.29 per share and is worth $ 0.52 per share.
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Google saw its overall quarterly revenues jump 21% from $ 27.77 billion to hit $ 33.74 billion. More specifically, the firm's revenue was up $ 27.16 billion. But this fell short of our estimate by more than $ 150 million.
Meanwhile, Alphabet's adjusted quarterly earnings climbed from $ 9.57 per share to $ 13.06 per share, which crushed our $ 10.54 estimate.
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Amazon's AWS cloud computing business saw its revenue climb 46% from $ 4.584 billion in the year-ago period to reach $ 6.679 billion. This growth fell in line with Q2's 49% jump and Q1's 48% and topped the final three quarters of 2017. AWS, which has long been a cash cow for Amazon, is likely to continue to shine as rivals Microsoft MSFT, IBM IBM, and Google expand their cloud reach.
Meanwhile, Amazon's Prime-heavy business subscription soared 52% to hit $ 3.698 billion. This unit is one of the world's best-selling brands, and soon enough Disney DIS, Apple AAPL, and AT & T.
Amazon has grown to $ 29.06 trillion, which marked down from Q2's 12%. But this figure will likely continue to decline.
Moving on, Alphabet currently competes against Apple with its Pixel smartphones. The firm's products also include the new Home Hub. "Google other revenues," which is made up of the Google Play Store, Google's cloud offerings, and its hardware business, saw its revenue jump by $ 1.05 billion, or over 29% to touch $ 4.64 billion.
Google's "other bets" unit surged roughly 25% to $ 146 million. This business features Fiber, Verily, and its self-driving car Waymo segment. It is also worth that Google's core business ad surged just over 20% to reach $ 28.95 billion.
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Coming into Monday, shares of GOOGL have been down roughly 3% since the beginning of the year, which includes roughly 16% decline over the past three months. AMZN stock has fallen by the same time during this same time period. Yet, Amazon shares are still up approximately 29% in 2018.
Both AMZN and GOOGL saw their stock prices rise sharply as a result of a brutal October. With that said, both companies are sitting at discounted rates compared to where they have traded in the recent past.
On top of that, GOOGL is currently trading right near its 12-month low of 22.8X 12-month forward Zacks Consensus EPS estimates, which also marks its one-year high of 33.8X.
Meanwhile, AMZN's recent pullback with its earnings growth and outlook has its stock trading at its 12-month low and a reasonable forward P / E of 65.1X. Amazon has traded as high as 282.7X during the last year, with a one-year median of 135.5X.
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Looking ahead, Amazon is expected to see its Q4 revenues climb roughly 22%, based on our current Zacks Consensus Estimate. Plus, its full-year revenues are projected to jump 32%, while its fiscal 2018 earnings are expected to be 292%.
Alphabet is expected to see its fiscal 2018 revenues jump 23% to reach $ 109.80 billion. The search engine giant's fiscal year is roughly 25%.
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Both companies will remain giants for years to come, with a wide audience of Facebook advertising with FB. But Google looks like it could face the government scrutiny.
At the same time, Amazon's advertising business is set to slowly grab their market research. Plus, Amazon's enterprise-level retail business continues to grow, as does its pharmaceutical unit and its brick-and-mortar business.
Both firms are currently Zacks Rank # 3 (Hold) stocks that could continue to slide amid a larger market downturn. And neither company has a dividend at the moment. Therefore, it seems like the best long-term buy may be new industries.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "More Stock News: This Is Bigger Than The iPhone!
It could become the mother of all revolutions. Apple sold $ 1 trillion iPhones in just 10 years, creating a $ 1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you do not buy now, you can kick yourself in 2020.
Click here for the 6 trades >>"data-reactid =" 80 ">More Stock News: This Is Bigger Than The iPhone!
It could become the mother of all revolutions. Apple sold $ 1 trillion iPhones in just 10 years, creating a $ 1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you do not buy now, you can kick yourself in 2020.
Click here for the 6 trades >>
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Want the latest recommendations from Zacks Investment Research? Today, you can download Best Stocks for the Next 30 Days. Click to get this free report
International Business Machines Corporation (IBM): Free Stock Analysis Report
The Walt Disney Company (DIS): Free Stock Analysis Report
Netflix, Inc. (NFLX): Free Stock Analysis Report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Facebook, Inc. (FB): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
AT & T Inc. (T): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
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