The performance of Big Tech, also known as the FAAMG stocks, has been pretty impressive over the past year thanks to a COVID-19 pandemic-driven tech boom. However, while the tech industry’s solid growth prospects should keep driving the performance of FAAMG stocks, not all five stocks in the group are equally positioned to continue gaining in the near term. So, between the FAAMG companies Microsoft (MSFT) and Amazon.com (NASDAQ:AMZN), for instance, let's see which name is a better buy now? Read on.In terms of market capitalization and influence on the stock market, FAAMG stocks—Facebook (NASDAQ:FB), Amazon, Apple (NASDAQ:AAPL), Microsoft, and Google (Alphabet (NASDAQ:GOOGL))—are the leaders. But between Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (AMZN),which one is a better buy now?
MSFT develops, supports, licenses, and sells various software products, services and solutions worldwide. The company also manufactures and sells PCs, tablets, gaming and entertainment consoles, intelligent devices, and related accessories through OEMs, distributors, resellers, digital marketplaces, and retail stores. In comparison, AMZN is the world’s largest e-commerce company that offers a wide range of products. And the company’s cloud computing platform, Amazon Web Services (AWS), is one of the biggest platforms in the digital computing space globally. It offers personalized shopping services, web-based credit card payment, and direct shipping to customers.
FAAMG stocks account for more than one-third of the S&P 500, which is widely accepted as the best representation of the U.S. economy. Keeping pace with changing consumer demand, these technology-focused companies have gained significantly over the years. The increasing dependence on tech solutions in the digital era should keep driving the performance of FAAMG stocks, and the technology sector is expected to reach $5 trillion in 2021. So, both MSFT and AMZN should benefit.