From Nasdaq: 2025-05-17 04:35:00

Apple (NASDAQ: AAPL) stock is facing challenges as its growth has slowed, causing Nvidia and Microsoft to surpass it in market cap. Amazon (NASDAQ: AMZN) is poised to overtake Apple due to its faster revenue growth and margin expansion. Amazon’s focus on e-commerce and cloud computing gives it an edge over Apple in 2025.

Amazon’s revenue growth outpaces Apple, with a 102% increase in the last five years compared to Apple’s 46%. Amazon’s strong presence in e-commerce and cloud computing, driven by AI, positions it for continued growth in 2025. Apple faces potential profit margin challenges due to import tariffs and impending lawsuits.

Amazon’s profit margin expansion outlook is more favorable than Apple’s, making its stock a more attractive investment. Apple’s looming lawsuits over search engine payments and App Store fees pose risks to its profitability. Amazon’s holistic valuation, factoring in growth potential, makes it a strong contender to surpass Apple in market capitalization by the end of 2025.

Amazon’s operating income trails Apple currently, but the earnings gap is expected to narrow by the end of 2025. Amazon’s potential for growth and margin expansion will likely lead investors to value it higher than Apple. Joining Stock Advisor for “Double Down” alerts on promising stocks like Amazon could present a lucrative opportunity for investors.



Read more at Nasdaq: Prediction: This AI Stock Will Be Worth More Than Apple By the End of 2025