Better Stock Today: Gilead vs. Amazon.com

In the spirit of World Cup competition, we're holding our own tournament in search of the Better Stock Today. We're pitting 32 companies against each other, and you, the reader, will determine the winner.

Gilead Sciences takes on Amazon.com for this first round-robin match up in our search for the better stock today.

Motley Fool health-care analyst David Williamson makes the case for Gilead Sciences (NASDAQ: GILD  ) to win this matchup. He believes Gilead's Sovaldi will continue to beat analyst estimates and that its runaway success will continue. Estimated to do $1.4 billion in first-quarter sales, the instant blockbuster clocked in at $2.3 billion. Gilead already has an even better combo treatment in the works, and despite its high price tag, Gilead's future rivals don't appear willing to undercut its cost. With an estimated 150 million hepatitis-C cases worldwide, curing the disease will prove beneficial to humanity and Gilead shareholders.

Fool tech analyst Nathan Hamilton believes the No. 1 reason Amazon.com (NASDAQ: AMZN  ) should win this match is Amazon Prime. Prime is Amazon.com's subscription-based offering that aligns well with Amazon.com's strategy, where upfront profitability is sacrificed to create a user base that's both profitable and sticky in the long term.

According to a study conducted by Consumer Intelligence Research Partners in 2013, a Prime member spends $1,340 annually, roughly double the amount non-Prime members spend. As a result, free cash flow -- CEO Jeff Bezos' preferred gauge of fundamental performance -- benefits as the company generates a stable source of cash to reinvest in Amazon.com's R&D heavy initiatives. Investors will want to keep an eye on Prime, as it will be a key driver of shareholder value.

Warren Buffett vs. his worst nightmare 
Warren Buffett just called this emerging technology a "real threat" to his biggest cash cow. While Buffett shakes in his billionaire boots, only a few investors are embracing this new market, which experts say will be worth over $2 trillion. It won't be long before everyone on Wall Street wises up, and that's why The Motley Fool is releasing this timely investor alert. Click here to learn more about what's keeping Buffett up at night and the one public company we're calling the brains behind the technology.

Vote here to determine the winner of this match, and sound off in the comments. Check back to Fool.com to see who advances in the tournament.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2994778, ~/Articles/ArticleHandler.aspx, 12/21/2014 5:49:59 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement