Better Stock Today Challenge: Seadrill 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.
Seadrill takes on Amazon.com for this first round-robin match up in our search for the better stock today.
Joel South, energy analyst at The Motley Fool, thinks Seadrill is more than worthy of your consideration today. Successful investors have been building significant wealth for years by finding solid, high dividend paying stocks. Seadrill sports an industry leading 10% yield and with solid contract coverage and a fleet of new drilling rigs, investors can count on Seadrill to be among the best offshore drillers in the world.
Fool tech analyst Nathan Hamilton believes the number one reason Amazon.com should win this match is Amazon Prime. Prime is Amazon's subscription based offering that aligns well with Amazon's strategy where up-front profitability is sacrificed to create a user base that is both profitable and sticky in the long-term.
According to a study conducted by Consumer Intelligence Research Partners in 2013, a Prime member spends $1340 annually, roughly double the amount non-Prime members spend. As a result, free-cash flow -- Chief Executive Officer Jeff Bezos' preferred gauge of fundamental performance -- benefits as the company generates a stable source of cash to reinvest in Amazon'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, 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.
The article Better Stock Today Challenge: Seadrill vs. Amazon.com originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Nathan Hamilton has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Seadrill. The Motley Fool owns shares of Amazon.com and Seadrill. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.
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