Amazon.com vs Fastly Which Is More Attractive?

Amazon.com and Fastly are two companies in the tech industry that have gained significant attention from investors. Amazon.com, the e-commerce giant, has seen a steady increase in its stock price over the years due to its strong market presence and diversified revenue streams. On the other hand, Fastly, a content delivery network provider, has experienced more volatility in its stock price as it tries to compete with industry giants. Both companies have their own unique strengths and weaknesses, making them interesting options for investors looking to diversify their portfolios.

Amazon.com or Fastly?

When comparing Amazon.com and Fastly, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Amazon.com and Fastly.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Amazon.com has a dividend yield of -%, while Fastly has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Amazon.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Fastly reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Amazon.com P/E ratio at 42.66 and Fastly's P/E ratio at -6.01. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Amazon.com P/B ratio is 8.21 while Fastly's P/B ratio is 0.92.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Amazon.com has seen a 5-year revenue growth of 1.33%, while Fastly's is 1.15%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Amazon.com's ROE at 21.82% and Fastly's ROE at -15.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $199.62 for Amazon.com and $6.31 for Fastly. Over the past year, Amazon.com's prices ranged from $141.50 to $215.90, with a yearly change of 52.58%. Fastly's prices fluctuated between $5.52 and $25.87, with a yearly change of 368.66%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.