Amazon.com, Inc. (AMZN) Is Beating Apple Inc. (AAPL) in This Statistic

Page 2 of 2

In addition to scoring highest in the trust department, Amazon did very well in both the products and services measurement and for emotional appeal. We all know certain companies that we just want to like, even when we are not sure why. Amazon scores as being one of those companies.

Investment impact
The respective implications for Apple and Amazon are very different, but each are vital to the future success of each company, and thus to the future performance of the stock. For Apple, the message is clearly that the company has remained a powerhouse in the minds of investors, but that it needs to remember how it got there and make some of the Apple magic happen in order to stay near the top. Financial performance is a much more transient reason to admire a company over the course of years — as a certain software giant found out — but regularly delivering the next hot new product is an undeniable advantage. Apple Inc. (NASDAQ:AAPL) investors are well advised to require such a move or to classify the stock in a somewhat different way than a growth company.

The story for Amazon is more positive and centers on the goodwill that it has created for itself. The company has developed something of a reputation for promising financial results tomorrow and tomorrow and tomorrow. The fact that this had not had a hugely negative impact on the company reputation or trustworthiness is extremely important. Amazon.com, Inc. (NASDAQ:AMZN) has several potentially and current market-leading divisions — cloud services, online retail, and even the Kindle series — and it needs time to continue to execute. The amount of premium currently priced into the stock certainly shows the long term mind-set of shareholders. While this mind-set its great to see in today’s investing environment, the company will need to execute perfectly over the long term in order to compensate shareholders for their faith.

The article Amazon Is Beating Apple in This Statistic originally appeared on Fool.com and is written by Doug Ehrman.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Apple. The Motley Fool owns shares of Amazon.com and Apple.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2