Amazon and PepsiCo are fortunate to benefit from sales growth during the coronavirus pandemic. That is not to say they are not facing challenges. Amazon is investing billions of dollars to meet the increasing demand. And PepsiCo is leaning on its snacks segment as people staying home consume fewer beverages.
Things will be changing again, now that there is some very positive news on a coronavirus vaccine. Let’s take a closer look to determine if Amazon’s better growth prospects outweigh PepsiCo’s higher profit margins.
Amazon has better growth prospects
Amazon started the year with 150 million Prime members and has likely added millions more. Revenue from subscription services, which includes fees paid by Prime members, increased to $6.6 billion in the most recent quarter. That’s more than 25% higher than the end of 2019 when the company first reported having 150 million Prime members.
