True, ‘alphabet stock’ each benefit from the ubiquity of technology and the
internet, but in vastly diferent ways.
Apple and Amazon, for example, are
still subject to the yoke of real world costs and physical products – if
delivery and logistics breaks down, their performance suffers. While
Netfix benefts from relatively low marginal customer acquisition costs, it
has an increasingly expensive content creation budget.
Microsoft and Google are active across a wide number of businesses, though their core
businesses largely benefit from deploying their products at zero marginal
cost. Facebook and Google accrue signifcant benefts from networking
effects. Facebook (and Google subsidiary YouTube) also benefit from the
zero marginal cost nature of the internet.
Plus, their content is almost
exclusively user generated. In short, the drivers and business dynamics of
these companies are disparate. The supernormal value in these stocks is
derived from their overlap within the Venn diagram of general technology
(in addition to being very large and having strong stock price returns).