Apple vs. Amazon: Which ‘Magnificent 7’ Stock Leads Post-Earnings?
The recent quarterly earnings reports from five of the “Magnificent 7” stocks, namely Microsoft, Alphabet, Meta Platforms, Apple, and Amazon, showcased significant advancements in their respective sectors. Notably, Apple and Amazon distinguished themselves for their strides in artificial intelligence (AI) and cloud services.
Amazon’s Performance Overview
Amazon (NASDAQ: AMZN) has exhibited impressive stock movement, gaining nearly 11% in 2025 and approximately 10% after revealing strong third-quarter results. The growth was spearheaded by the robust performance of its cloud computing arm, Amazon Web Services (AWS).
- Earnings per Share: $1.95, exceeding the expected $1.57.
- Revenue: Rose 13.4% year-over-year to $180.2 billion, surpassing the forecast of $177.9 billion.
- AWS Revenue Growth: Increased by 20%, alleviating concerns over competition from other cloud service providers.
CEO Andy Jassy indicated that AWS is experiencing growth rates not seen since 2022, propelled by increasing demand for AI services. For Q4, Amazon anticipates revenue between $206 billion and $213 billion, slightly ahead of Wall Street’s estimate of $207.9 billion, suggesting a positive outlook as the holiday season approaches.
Analyst Expectations for Amazon
Market analysts have responded favorably to Amazon’s impressive performance:
- Mark Mahaney of Evercore raised the price target from $280 to $335, highlighting Amazon as a “Top Pick.”
- Ronald Josey of Citi increased the target from $270 to $320, affirming Amazon as their preferred internet stock.
Apple’s Financial Highlights
Apple (NASDAQ: AAPL) has seen its stock rise by approximately 8% so far in 2025, bolstered by favorable fiscal fourth-quarter results. Strong demand for the iPhone 17 and growth in its Services segment drove the company’s performance.
- Earnings per Share: $1.85, which is 13% higher year-over-year, surpassing the expected $1.78.
- Revenue: Grew 8% to $102.5 billion, slightly exceeding forecasts.
For Fiscal Q1, Apple estimates revenue growth of 10% to 12%, aiming for $136.7 billion to $139.2 billion, which is above analysts’ expectations of $131.82 billion. CEO Tim Cook emphasized strong iPhone sales and announced an AI-enhanced Siri upgrade for the following year.
Analyst Insights for Apple
Analysts have maintained a positive outlook on Apple as well:
- JPMorgan’s Samik Chatterjee raised the price target from $290 to $305, reflecting confidence in management and product demand.
- Bank of America’s Wamsi Mohan increased the target to $325, noting a substantial gross margin despite tariffs.
Comparing Apple and Amazon: Which Stock Leads?
Using the TipRanks Stock Comparison Tool, let’s examine which stock analysts favor:
| Company | Consensus Rating | Smart Score | Current Price | Average Price Target | Potential Upside |
|---|---|---|---|---|---|
| Amazon | Strong Buy | 10 | $244.22 | $291.95 | 19.5% |
| Apple | Moderate Buy | 7 | $270.37 | $285.97 | 5.8% |
Conclusion
Both Apple and Amazon have delivered favorable quarterly results, emphasizing their roles as pivotal players in AI and cloud development. However, current indications from Wall Street suggest that Amazon is viewed as the stronger investment option due to its accelerating AWS growth and higher projected returns. Meanwhile, Apple continues to promise steady long-term value supported by robust product demand and AI innovations.
