Pat Mazza states, “However, what most don’t know is that Amazon derives most of its profits from Amazon Web Services (AWS). Also, its move into online ads will create a new revenue stream for the company 2021 and beyond.”
Mazza concludes, “I’ve worked at Microsoft for the better part of my 20’s, however, if it comes to which company I expect to grow more the answer is this: AMZN has higher growth potential according to my extensive personal analysis. Admittedly, Amazon investors will have to pay more than double the forward valuation. Still, Amazon is dramatically surpassing its tech counterpart on profit growth. Moreover, Amazon benefits from a more diverse business. Indeed, it helped that the company’s two primary revenue drivers, e-commerce and cloud computing, benefited from the pandemic. It could gain an increased advantage by potentially cutting into Facebook’s ad business.”
