Consider Ditching Amazon? Here's Why These Relentless Shares are Superior Investment Options.
If you've been an investor for any length of time, you've likely been pushed toward buying stock in Amazon. It's not just the undisputed king of e-commerce, but also the world's biggest cloud computing service provider. This market dominance speaks volumes about the company's ability to execute.
However, there are other stocks worth considering, including names that bring less risk and more immediate income. Any portfolio could use the diversification beyond the obvious growth companies. Let's dive deeper into three other unstoppable (though quite different) stocks that might be even better buys right now.
consumer goods holding,
1. PepsiCo
PEP
When investors are looking for a consumer goods holding, Coca-Cola often comes to mind. And it's understandable why. It's not just the leader of the packaged beverage industry; its brands are woven into the fabric of our culture.
beverage giants, though. Whereas the bulk of Coca-Cola's products are actually bottled and distributed by third parties that simply purchase concentrated flavor syrups from the company, PepsiCo handles all of its own bottling and distribution. It even does revenue-bearing bottling duties for other brands, further monetizing its assets.
However, just because a company is the biggest and best-known name in a business, it doesn't necessarily make it the best investment. In this case, PepsiCo could be the better pick among the two titans of the beverage world.
Although their products might seem identical, there are distinct differences between the two beverage giants. Coca-Cola's products are primarily bottled and distributed by third parties, while PepsiCo handles its own bottling and distribution. This structure gives PepsiCo complete control of its operation, making it more flexible and nimble.
PEP Dividend data by
This control adds to the company's net operating costs, but it also allows PepsiCo to generate more net earnings growth that is passed along to shareholders in the form of dividends. In fact, PepsiCo's dividend growth has easily outpaced Coca-Cola's over the past few decades.
YCharts
more net-rewarding ticker of the two for the past 30 years. This dynamic isn't apt to change in the foreseeable future, either.
PepsiCo's dividend growth has outpaced Coca-Cola's over the past few decades. And when reinvesting both companies' dividends, PepsiCo has been the more rewarding ticker for the past 30 years.
e-commerce industry, but downright dominates it. Market research outfit Digital Commerce 360 says Amazon currently controls a leading 40% of the United States online-shopping market, leaving next-nearest
2. Shopify
SHOP
Amazon is undeniably the king of e-commerce. It currently controls about 40% of the US online-shopping market, leaving next-nearest Walmart in the dust with only about 10% of this industry's annual sales [1][2].
fourth-quarter report, its clients' online shopping platforms collectively facilitated the sale of $95.5 billion worth of goods and services during the three-month stretch ending in December, in turn generating $2.8 billion in revenue for itself. Those two numbers are up 26% and 31% year over year, respectively, extending a long-established growth streak. Analysts are calling for top-line growth of more than 20% for at least the next couple of years, paired with similar per-share profit growth.
However, the e-commerce market is constantly evolving, adapting to consumers' ever-changing preferences. And as it turns out, a massive online mall like Amazon's may now be too big for its own good, overwhelming rather than satisfying shoppers who crave something more personal and authentic.
AVGO
Enter Shopify.
artificial intelligence (AI) industry.
Simply put, Shopify helps businesses of all sizes build and manage an e-commerce presence. The company doesn't disclose how many merchants are using its platform, but its clients' online shopping platforms facilitated the sale of $95.5 billion worth of goods and services in the fourth quarter, generating $2.8 billion in revenue [3].
superfast networking tech. Indeed, although AI revenue only made up $12.2 billion worth of last year's semiconductor revenue of just over $30 billion and total top line of $51.6 billion, the company's AI business grew a whopping 220% in 2024.
That's just the beginning, though. As consumers and corporations continue to discover the value that Shopify's solutions bring to the table, look for the company to capture more than its fair share of the e-commerce industry's future growth.
3. Broadcom
Most investors have heard of Broadcom, but many wouldn't be able to name a single product the company makes. That's because its tech is often found inside most consumer electronics, rarely seen on the outside.
Broadcom makes everything from hard drive control boards to Ethernet adapters to fiber-optic connectors to wireless antenna tech. And while it might not seem like a sexy pick, Broadcom is a key player in the artificial intelligence (AI) revolution.
Superfast computing processors made by Nvidia and its peers only solve part of the speed challenge created by the mountain of digital data now being produced and analyzed by AI data centers. The interconnections between all of these processors need to be just as fast.
Broadcom makes this superfast networking tech. In fact, although AI revenue only made up $12.2 billion worth of total semiconductor revenue last year, the company's AI business grew a whopping 220% in 2024.
This is just the beginning, though. Mordor Intelligence believes the global AI hardware market is set to expand at an annualized pace of 26% through 2030 [2]. This tailwind offers enormous growth potential to a company with few direct competitors.
Sources:[1] https://www.fool.com/investing/stock-market/market-sectors/consumer-discretionary/top-ecommerce-companies/[2] https://www.mordorintelligence.com/industry-reports/artificial-intelligence-market[3] https://www.fool.com/investing/2025/02/11/shopifys-growth-still-looks-solid/[4] https://www.fool.com/investing/2025/02/07/prediction-this-artificial-intelligence-ai-chip-st/
- When considering different stocks for investment, it's worth looking beyond just high-growth companies like Amazon. Traditional consumer goods companies, such as PepsiCo, can also offer diversification and satisfying returns.
- PepsiCo's control over its own bottling and distribution operations gives it more flexibility and nimbleness compared to competitors like Coca-Cola. This structure has allowed PepsiCo to outperform Coca-Cola in net earnings growth and dividend growth over the past few decades.
- E-commerce giant Amazon currently controls around 40% of the US online-shopping market, leaving its closest competitor, Walmart, with only about 10%. However, Shopify has emerged as a potential challenger due to its platform's ability to help businesses of all sizes build and manage an e-commerce presence.
- Broadcom is a key player in the artificial intelligence (AI) revolution, making hardware components like Ethernet adapters and fiber-optic connectors. The company's AI business grew by 220% in 2024, and with the global AI hardware market projected to grow at an annualized rate of 26% through 2030, Broadcom has significant growth potential in this space.
Here's a summary chart of the chosen stocks:
| Stock Ticker | Company Name | Sector || --- | --- | --- || PEP | PepsiCo | Consumer Goods || SHOP | Shopify | E-commerce || AVGO | Broadcom | Artificial Intelligence |