We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Amazon and Alphabet (that Web Monster/Big Brother formerly known as Google) both delivered strong quarterly reports Thursday that speak to the massive innovation frontier unfolding in Internet services and Big Data collection, storage, and analytics.
These two companies do much more than help enterprises manage their deluge of information. They help them profit from it. And that's why their profits are growing attractively and investors continue to be rewarded, especially as both compete for customer engagement with the numero uno customer engager: VIDEO!
As the Internet, subscription content models, and on-demand services replace traditional TV, Fortune 500 advertisers have been doing a mass migration to web alternatives. The problem is that video is a HUGE DATA HOG and consumes massive space on cloud servers and transmission networks.
What's the Message of the Cloud?
Without a doubt, every major corporation needs to have a social media strategy that includes Big Data analytics and video engagement of customers. And platform monsters like Amazon and Alphabet are making it happen for them.
I recommended owning both stocks for long-term portfolios in my Zacks Confidential report on Big Economic Disruption from early June.
But corporations also need to manage the "data plan" before they get an "overage charge" like my kids tend to ring up every month watching YouTube video links at all hours. Facebook earnings this week also confirmed the massive demand for mobile video advertising and services that keep profits flowing for marketers and cloud providers.
Maybe the long-term investment play will be with the solution coming from the unsung hero of the cloud, Microsoft, who also delivered an earnings beat this month. Check out my video essay below about something Mr. Softy just did with digital data storage and human DNA that will blow your beautiful mind.
Best,
Kevin Cook
Senior Stock Strategist, Zacks Investment Research
On Monday morning, Zacks' computer-generated "Black Box" strategy will release its next batch of stocks and trigger a wave of buying among a select group of investors.
Over a 10-year testing period, this secret formulation of stock traits produced a flurry of quick winners, more than doubled the S&P. With the market breaking through to new all-time highs, the potential gains are truly spectacular. You can be first in line to see next week's picks.
Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including timely recommendation changes, earnings announcements and, most importantly, earnings estimate revisions.