Amazon and Apple are two dominant technology consumer products companies in the US market. Amazon leads in e-commerce with a 38% market share, while Apple dominates the smartphone market with a 59% share. Despite both companies’ strong positions, the question remains: which stock is a better buy right now?
Amazon has been outperforming Apple in revenue growth, with double-digit growth in the last four quarters, including a 13% increase last quarter to $143.3 billion. In comparison, Apple has struggled with growth, with revenue increasing only once in the last four quarters and a 4% decline last quarter to $90.8 billion. Both companies are looking to artificial intelligence (AI) for growth, with Amazon’s AWS segment showing strong revenue growth and Apple introducing AI features powered by Apple Intelligence.
Amazon’s forward price-earnings ratio (P/E) is over 40, while Apple’s is below 33. Amazon’s faster revenue growth and stronger profit growth give it an edge, but Apple’s cash position of $68.6 billion and share buyback program add to its appeal. Overall, both companies are strong long-term investments, but Amazon’s growth potential and investment strategy give it an edge for now.
Investors looking to buy Amazon stock should consider Stock Advisor’s recommendation of the top 10 stocks for future growth. While Amazon may not be on that list, the recommended stocks have the potential for significant returns in the coming years.
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool, which recommends Amazon, Apple, and Walmart. The Motley Fool has a disclosure policy.
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