That logic applies when you joined a while ago. However, with the stock sky high (P/E 66, double GOOG 33), joining Amazon right now may not give you that potential upside anymore. Your managers and long time careers will get a larger portion of the upside. It's already evident by the stock growth of GOOG compared to AMZN in the past one year/quarter. The P/E of Amazon is high, compared with the growth potential vs others in FAANG. Picking a company to join is also akin to pick a stock to invest. Low P/E is not everything, but it's an important part of the equation.
For non-Staff level SWEs, my opinion is that joining a FAANG with lower P/E is better for your future earnings.
> For non-Staff level SWEs, my opinion is that joining a FAANG with lower P/E is better for your future earnings.
No, because mr. Market has been looking at everything except P/E, more essentially you can't spend P/E. You spend price.
If you want to throw in P/E in the analysis fine, but then you have to throw in every other element which makes the stock move:
1) Cult CEO who is able to sell the narrative
2) Fed policy
3) Macro environment
4) Odds of company being targeted by the DOJ
and all the other trillions of factors which influences the price of a security.
As Druckenmiller reminds us: "There is not a phenomenon in the world which doesn't affect the price of a security in some shape or form, no matter how small"
I’m not seeing estimates of Amazon at 5x larger business (revenue). Estimates have Amazon at ~2x revenue ($850ish B) in five years and earnings growth slower than current levels. Folks think they’ll grow, just not quite as fast.
We’ll see. I think it’s going to be hard to maintain today’s growth rate at this size.
For non-Staff level SWEs, my opinion is that joining a FAANG with lower P/E is better for your future earnings.