Of all three companies, Amazon is the one that stands out from the rest as the most successful. The gap between Amazon and the other two businesses is wide and, according to Paul, this gap will likely remain for the time being.
Even with this momentum, Amazon investors should remain cautious. The company is set to soon become a four-figure stock. Paul notes that, regardless of whether this company is weighted heavily in your portfolio, it might be wise to cut back on this one a bit.
Tech investors should keep Microsoft Azure on their radar and look for a switch in profitability. Especially when it comes to their international business. This side of their company is still losing money, but the company does expect recent investments in India to soon pay off. Investors should keep these changes in mind and look for a change in momentum when it comes to this business.
Thanks to the push of Google Cloud by Diane Green, Paul expects positive things in this company’s future. Again, the key is to keep an eye on profitability and look at valuation.
One method for looking at valuation is to use a price/earnings to growth ratio. Paul also recommends looking at a company’s growth and positioning in relation to its total available market.