Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), Google Inc (GOOG): Three Tech Companies Aggressively Betting on Growth

Projects like Android, YouTube, and Chrome seemed like a waste of time and money before they were recognized as remarkable strategic moves by the company. Current products and services under development like Google Inc (NASDAQ:GOOG) Fiber, augmented reality glasses, or the self-driving car are quite uncertain from a financial point of view, but they have some truly disruptive long term potential.

Online advertising is the cash cow generating big and growing profits for the company, but there’s no shortage of innovation and long-term vision at Google Inc (NASDAQ:GOOG).

Netflix is playing a long term game
Netflix, Inc. (NASDAQ:NFLX) is another company putting long term growth opportunities above short-term profit margins, and original content is a big part of that strategy. The company doesn’t disclose production costs, but industry analysts estimate that series like House of Cards and Orange Is the New Black may cost something in the area of $50 million to $60 million per season.

Charging $7.99 per month, it would be almost impossible to generate enough new subscribers with each original production to cover those costs in the short term, but that’s not what Netflix, Inc. (NASDAQ:NFLX) is concerned about.

The company wants to build a large and valuable library of content, compelling enough to make the modest membership fee look increasingly attractive in comparison with the value of the service it’s offering.

Netflix, Inc. (NASDAQ:NFLX) is not focused on maximizing profit now; the company is focused on gaining subscribers and providing a convincing proposition to its customers. Online streaming is a business with enormous potential for growth, and Netflix wants to make sure it secures a leading position to capitalize on that opportunity in the future.

Bottom line
Apple Inc. (NASDAQ:AAPL)’s pricing policies reflect that the company is prioritizing margins and brand differentiation over growth opportunities, at least when it comes to its biggest product, the iPhone. Investors looking for more aggressive growth companies in the sector may want to consider alternatives like Amazon.com, Inc. (NASDAQ:AMZN), Google Inc (NASDAQ:GOOG), and Netflix.

The article 3 Tech Companies Aggressively Betting on Growth originally appeared on Fool.com and is written by Andres Cardenal.

Andres Cardenal owns shares of Apple, Amazon, Google and Netflix. The Motley Fool recommends Amazon.com, Apple, Google, and Netflix. The Motley Fool owns shares of Amazon.com, Apple, Google, and Netflix.

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