In the following video, Motley Fool financial editor Brenton Flynn discusses his reason for owning shares of online retailer Amazon.com and staying on the sidelines with Apple. By traditional valuation metrics, owning Amazon, whose P/E ratio is 180, seems insane when compared Apple, which comes in at a mere 15. However, Brenton sees Amazon as a much more compelling long-term story than Apple, which will have to continually innovate each and every year to stay relevant in the rapidly evolving consumer-electronics industry. Follow along for a summary of Brenton's logic, and feel free to criticize him in the comments section!
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Brenton Flynn owns shares of Amazon.com. The Motley Fool owns shares of Apple and Amazon.com. Motley Fool newsletter services recommend Amazon.com and Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.