Amazon's Cloud Computing Business Outshines Elon Musk's SpaceX

The recent initial public offering (IPO) of SpaceX has grabbed attention from investors and media alike. However, its valuation and complex business model raise concerns.

A closer look at two consumer goods sector companies reveals that they may be better investment alternatives: Amazon's fast-growing cloud-computing business, Amazon Web Services (AWS), and TJX Companies' off-price retailer model.

AWS continues to grow sales and profits rapidly, with second-quarter sales increasing 36.8% year over year to $42.2 billion, pushing operating income 63.6% higher to $16.6 billion. Its competitive advantage is due to Amazon's enormous size, making it difficult for new entrants to enter the space.

TJX Companies' same-store sales have continued to show strong growth, with overall fiscal Q1 comps increasing 6%, and diluted earnings per share increasing 29% to $1.19. The company continues to expand, having opened 129 new stores last year and adding another 48 in Q1.