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Amazon Vs. Alphabet: The Race To $1,000 Per Share

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Amazon Vs. Alphabet: The Race To $1,000 Per Share
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Shares of Amazon.com, Inc. (NASDAQ: AMZN) closed on Monday at $957.97, while Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s stock trailed slightly behind at $937.08. Once one of these stocks hit the coveted $1,000 per share mark, it will likely make headlines outside of financial media. But which one will win the race?

Todd Gordon, the founder of TradingAnalysis.com, was a guest on CNBC's "Trading Nation" to offer his take. Taking a look at the one-day chart, it is evident that both stocks have notched strong year-to-date gains. So, one way to pick a winner in the Amazon versus Alphabet debate is to use a "ratio" of one stock to the other.

Looking At The Charts

Gordon explained that by dividing the per share price of Alphabet's stock by the share price of Amazon since the start of 2017 generates an upward-moving line. This indicates "the outperformance of Google relative to Amazon."

But taking a more near-term approach, Amazon's stock continued to hit new all-time highs while Alphabet's stock has consolidated. On the other one hand, Amazon's momentum could stall and lose momentum; Alphabet's recent consolidation could turn into a breakout.

"It seems to be that Google is ready to break this consolidation, push higher and probably reach $1,000," he said. "So, it's just kind of the idea of Google sort of waiting for the correct time."

At the end of the day, will most investors really care which stock wins the race, so long as both stocks trade at all-time high prices above $1,000 per share? Short-term and swing traders might find this exercise more pertinent, and Gordon suggested these investors implement a $960/$955 put spread. He sold a put spread below the consolidation levels, which gives a positive delta that should benefit as the stock races towards $1,000 per share.

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Latest Ratings for AMZN

DateFirmActionFromTo
Aug 2017SunTrust Robinson HumphreyInitiates Coverage OnBuy
Aug 2017MizuhoReinstatesBuy
Jul 2017Morgan StanleyMaintainsOverweight

View More Analyst Ratings for AMZN
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