There are no competitions between billionaires, this could lead to an ego match between Elon Musk and Jeff Bezos, which would not be of much interest. Nevertheless, we would like to share with you some valuable points related to the stock performance of Tesla stock and Amazon stock. This document was prepared with the help of a friend Twittos Mathias Fonsan investor who regularly shares data on Tesla stock.
In this article, we will compare the two tech giants on different criteria:
• Market assessment and execution
• Growth in net income
• Revenue growth
Market assessment and execution
- Tesla and Amazon are the only publicly traded companies with a valuation above $350 billion and a P/E ratio above 35.
- Amazon stock has missed Wall Street analysts’ quarterly earnings expectations twice in the past 12 months.
- Tesla stock beat earnings forecasts every quarter of the past year.
Net income growth
A high P/E ratio is often associated with a company whose revenue and (especially) net income is growing faster than its peers.
Tesla has increased its profits by 103% in the past 12 months, while Amazon’s profits have fallen by -9%…
📊: Q3 YOY Net Income Growth
Amazon’s profits have shrunk despite a 15% increase in revenue last year.
Tesla’s profits doubled as its revenue grew 56% – a classic example of economies of scale, manufacturing efficiency and breakthrough…
📊: Revenue growth in the 3rd quarter year/year
Tesla’s operating efficiency is demonstrated by the narrowing of the gap between its operating margins and gross margins – aided by Tesla’s operating margin expansion (red line) – while Amazon’s operating margin has been gradually declining since the first quarter of 21…
📊: Operating/Gross Margins — @FinChartco