Asked on 18 Apr 2019
Which stock is likely to give the highest return in 10 years among Google, Amazon and Alibaba?
Personally, I would pick Amazon. Amazon has the highest potential for long-term growth in terms of its strategic positioning. Google is an information-based company, therefore making it heavily influenced by change such as changes in technology, fashion, style, politics.
Amazon is present in the physical world of products, warehouses, server farms and others. These things are much more difficult to recreate and as such provide stability. These things demand a real-world practicality and skill in day-to-day satisfaction of customers as well as technological expertise. This constrains Amazon's behavior in a very practical way that is to focus on its customers rather than extraneous philosophical issues.
Amazon aims to make all of its business customer-centric, a goal that will only benefit the company. Amazon recently ventured into food distribution and they are already owning over 60% of online sales.
Alibaba and Amazon, the two big giants of the ecommerce industry although have many features in common, there are significant differences. Amazon's revenue comes from electronic products and merchandises and digital media content whereas a bulk of Alibaba's revenue comes from indirect sales through its most profitable marketplace, Taobao. Amazon has an edge as it operates on a managed online platform that looks similar to a traditional store but stays online. This provides Amazon with the control over customer experience.
My pick will be google.
Every internet browser comes by default with Google. Even microsoft Edge is going to create a Chrome based browser.
As of now Google already dominates the search space and by that they dominate the space of advertising, Search engine optimisation, search engine marketing.
Advertisers could use other search engines but they will never be able to match the reach of google's user base.
Google also has an impressive cloud network, and suite of online tools. Who doesn't use gmail? They are leveraging this cloud power to build a netflix of games system too. Imagine playing games without installing them, at a single click you can play in 5 seconds.!