Goldman Sachs Raises Price Targets for AMZN and AAPL After Strong Earnings

Tech giants Amazon (AMZN) and Apple (AAPL) have reported impressive earnings, prompting Goldman Sachs to raise their price targets for both stocks. These reports show that the companies continue to thrive despite market challenges.

Amazon’s Strong Earnings Performance

In the third quarter, Amazon reported earnings of $1.95 per share, surpassing analysts’ expectations of $1.57 per share. Revenue increased to $180.2 billion, driven by significant growth in its AWS cloud division and advertising business.

Goldman Sachs Boosts Amazon Price Target

• Goldman Sachs raised the price target for Amazon from $275 to $290.
• The firm maintained a Buy rating, emphasizing Amazon’s strong e-commerce and cloud performance.
• The growth in Amazon’s advertising unit was highlighted as a key contributor to increasing profit margins.

Goldman Sachs noted rising demand for AI tools among large companies, which is expected to further benefit Amazon’s AWS division. Additionally, improvements in Amazon’s retail and delivery network are enhancing efficiency and reducing costs.

Apple’s Solid Fiscal Fourth-Quarter Results

Apple reported fiscal fourth-quarter earnings of $1.85 per share, a 13% increase from the previous year. Revenue rose 8% to $102.5 billion, buoyed by steady demand for iPhones and strong growth in services.

Goldman Sachs Raises Apple Price Target

• The price target for Apple was raised from $279 to $320.
• Goldman Sachs maintained a Buy rating, citing solid demand for Apple products.
• The revenue dip in iPhones was attributed to supply constraints, not low sales.

Goldman Sachs anticipates that Apple will enter a multi-year product upgrade cycle, bolstered by new AI features and innovative designs, including potential foldable iPhones by 2026. The services revenue saw a 15% year-over-year increase, driven by higher subscriptions for services like iCloud+, AppleCare, and AppleOne.

Market Outlook for Investors

Currently, Amazon is rated as a “Strong Buy” with a 20.8% upside potential over the next year. Conversely, Apple holds a “Moderate Buy” rating, with a modest 2.7% projected downside from current market levels.

Investors are encouraged to consider these insights from Goldman Sachs as they navigate the evolving tech landscape. Both companies continue to demonstrate resilience and potential for future growth.