Follow Morningstar Amazon and ServiceNow

Growth technology stocks have been selling off this year. We found that the stock prices of two companies with “wide moats” were very attractive. The economic moat created by investment guru Warren Buffett refers to competitiveness that can protect market share and profitability from competitors.

The first is Amazon. In our opinion, its value is $4,000 per share. Amazon dominates e-commerce and public cloud services. Scale and scale create low prices through choice, which creates a virtuous circle that attracts customers and attracts more suppliers for third-party sellers.

Amazon Prime is a premium service that provides regular cash flow and at the same time makes buying Amazon products more attractive to consumers. These factors have created the only aggregator in the United States (Internet companies or websites that collect information about products and services from multiple companies and provide this information on one website).

Given its presence on the Internet and Amazon’s vast amount of information about its customers, the company’s advertising business has grown rapidly. From a personal investment perspective, we expect continued innovation will help drive the stock price to rise further.

The second stock to watch is ServiceNow, which we believe is worth $573 per share. We believe that ServiceNow benefits from the strong demand from COVID-19, as service and automation-related solutions have become indispensable for enterprises in the new remote reality. As the company accelerates the pace of digital transformation, this trend is expected to continue in the next two years.

ServiceNow can continue to use its advantages in the workflow automation platform to attract existing enterprise customers to the deeper information and communications (IT) field. In other words, it is becoming a key partner for the company’s digital transformation.

Abstract = Reporter Kim Rian [email protected]

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