Amazon's growth is poised to exceed Apple's as it targets a market valuation of $2.4 trillion against Apple's $3.5 trillion. Despite Apple's formidable position with significant revenue from iPhones, Amazon's profitability is driven by two critical divisions: Amazon Web Services (AWS) and advertising services. AWS achieved 17% revenue growth year-over-year, largely due to shifting workloads to cloud-based solutions and new AI applications. While AWS faces stiff competition from Azure and Google Cloud, its contribution to Amazon's profit margins remains significant, accounting for 53% of operating profits.
Amazon's growth rates are far superior to Apple's, positioning it as a better stock pick with substantial growth potential likely to surpass Apple in market share within five years.
Apple, as the leading consumer tech brand, generates substantial revenue, primarily from its iPhones and other products, but faces potential competition from rapidly growing companies like Amazon.
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