Like the various nation-states of the world, Google (GOOG) vs. Amazon (AMZN) are also approaching their own nuclear war: both technology titans will have such growing energy demands that they will have to consider nuclear energy. And so, the key to understanding the growth opportunity of these companies is to assess their ability to use nuclear energy, and to use nuclear energy to build an infrastructure for an exponential improvement in data transmission across the Internet.
First, I'd like to take an aside to address the moral issue surrounding uranium. I am of the belief that the world is in the midst of an energy crisis, and that as much energy is needed as possible. I think energy is priceless; it is the one thing justified at any price, as energy is key to survival -- and I view survival as justified at any price.
I do not deny the horrific accidents that can occur from nuclear energy, or its role in war, and how its market may be tainted with participants whose motives are corrupt. Though I think all forms of energy have their downsides -- fossil fuels being the one most hated -- and think the future is based upon a composite of energy sources, with nuclear playing a role larger than it currently does. I think this brings the world greater energy, which enables greater innovation and more life. From this perspective, I participate in the market for nuclear energy via the purchase of uranium stocks.
Given the connection between uranium and electricity production, uranium remains my favorite for how the technology titans with infinite demand for electricity will satiate their demand (thorium is another option, although I think it is too undeveloped at the moment; I suspect the value network surrounding uranium is more developed and ripe for growth). In my previous coverage of Google on Seeking Alpha, I noted my view that Google's growth opportunities were contingent upon progress in commercializing new energy solutions -- that that was the disruptive trajectory most within Google's reach, although political will may be needed in light of how the energy market operates.
I still maintain this view, although I'm starting to think Amazon may have the organizational structure that is better suited for executing on this path. How Amazon transformed itself from a book store to a web hosting service to a computer manufacturer suggests an organizational structure conducive towards leveraging core competences to enter dramatically new different businesses. Of course Amazon will face the same political challenges Google faces.
On the uranium side of things, I would love to see Google and Amazon support the growth of US-based uranium producers leveraging ISR technology -- particularly Uranium Energy Corporation (UEC), a favorite of mine in the market. Consistent with disruptive theory, it would be good to see UEC service customers like Google and Amazon, whose muscle may help fuel the growth of uranium and nuclear energy as a part of our future of energy.
Watching for developments on this intersection -- where major technology players meet emerging energy providers -- will be a key indicator as to the future of both technology titans (with Google and Amazon being the leading contenders, in my opinion) and nuclear energy providers, as well as a point where disruption occurs and economic value is unlocked.