Apple remains a strong brand with loyal customers and a history of innovation but faces challenges such as tariff risks and trailing peers in AI. AI momentum is benefiting Amazon and Alphabet and could enable them to overtake Apple in market capitalization within roughly three years. Amazon has grown revenue faster than peers over the past three years and derives most profits from AWS, whose sales grew 17.5% to $30.9 billion in the second quarter. Amazon is deploying AI both as cloud services and in operations, and its advertising business is an additional growth driver.
Amazon's current market cap is $2.4 billion, compared to Apple's $3.4 trillion. That sounds like a massive difference, but it's worth noting that Amazon has consistently grown its revenue faster than its peers over the past three years, despite having higher sales numbers. The e-commerce specialist should maintain that momentum for several reasons. First, it remains a leader in the cloud computing market.
AWS sales in the second quarter increased by 17.5% year over year to $30.9 billion, outpacing the rest of the business. AWS is also responsible for most of Amazon's profits. Second, Amazon is capitalizing on the rise of AI, thanks to a suite of AI-related services it offers through its cloud. The company is also implementing the technology in-house. For instance, Amazon's industrial robots utilize AI-powered algorithms to optimize travel distances in the company's warehouses, enabling them to handle and deliver packages more efficiently
It boasts one of the most valuable brand names in the world, an army of loyal customers, and has consistently proven its innovative qualities over time. However, the tech leader has faced challenges lately, one of which is the threat of tariffs. Furthermore, Apple has fallen behind some of its similarly sized tech peers in the rapidly expanding artificial intelligence (AI) market.
Collection
[
|
...
]