Berkshire Hathaway, under new CEO Greg Abel, has tripled its investment in Alphabet (NASDAQ: GOOG, GOOGL) during the first quarter of 2023. The company has concentrated its portfolio into 29 stocks, divesting from several smaller positions, including Amazon (NASDAQ: AMZN).
Alphabet boasts a market capitalization of $4.4 trillion, outpacing Amazon’s underperformance in comparison to the S&P 500. In terms of growth metrics, Alphabet reported a 22% year-over-year sales growth and a 30% increase in operating income, while Amazon’s sales growth stood at 17%. The P/E ratios of both companies are nearly identical at 27.6 for Alphabet and 28.4 for Amazon.
Although Amazon is nearly double Alphabet’s size in revenue, with $743 billion against Alphabet’s $423 billion, Alphabet’s superior growth rates and higher operating margins (36% compared to Amazon’s 13.4%) position it as an appealing investment option for many analysts.
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