Better Buy: Amazon vs. PepsiCo
The COVID-19 outbreak caused major disruption for some industries while causing a spike in demand for everyday essentials. Amazon.com (NASDAQ: AMZN) and PepsiCo (NASDAQ: PEP) both saw a boost in sales for certain products. Amazon saw a surge in demand for groceries, while sales of wireless products and other non-essentials were dampened during the outbreak.
PepsiCo generated 54% of its sales last year from food with the balance from beverages, and it experienced balanced growth across these categories in the first quarter. In addition to its namesake soft drink brand, it owns Gatorade, Mountain Dew, Quaker, Doritos, and SodaStream, the fast-growing, do-it-yourself soda maker that it acquired in 2018 for $3.3 billion.
Year to date, Amazon stock has climbed 64% as investors sense a step change in customer migration to shopping online, which remains a key part of the investment thesis for Amazon. PepsiCo's solid first quarter wasn't enough to boost the stock, which is down slightly since the start of the year.
Source Fool.com
