Amazon's Profit Growth Shines Over Apple: Which "Magnificent Seven" Stock Wins?

Apple and Amazon, part of the “Magnificent Seven” stocks, show slow growth rates. Amazon’s high-growth segments drive profit growth, while Apple’s profit ties closely to revenue. Apple lacks innovation, facing a longer smartphone turnover cycle, while Amazon excels in e-commerce with strong performers like AWS and advertising services leading to profit growth.

Amazon’s profit growth outshines Apple’s, with high-margin businesses like AWS and advertising showing rapid profit increase. Amazon’s operating profits rose 20% in Q1, far surpassing Apple’s 6% growth. With strong performers like AWS and advertising, Amazon offers better profit growth potential than Apple.

Consider investing in Amazon, which offers earnings growth catalysts Apple lacks. The Motley Fool’s Stock Advisor team shares the 10 best stocks, excluding Amazon, with potential for high returns. Stock Advisor has outperformed the S&P 500 significantly, so don’t miss the latest top 10 list for potential investment opportunities. 1. The stock market surged today, with the S&P 500 reaching a new record high of 4,200 points. This was fueled by positive earnings reports from major tech companies like Apple and Amazon.

2. In other news, the unemployment rate dropped to 5.8% as the economy added 850,000 jobs in the last month. This is the lowest unemployment rate since the start of the pandemic.

3. On the political front, President Biden signed a $1.2 trillion infrastructure bill into law, aiming to improve the country’s roads, bridges, and broadband connectivity. This marks a significant victory for the administration.

4. Lastly, scientists have discovered a new species of dinosaur in Argentina. The Bajadasaurus pronuspinax had a unique spiked neck, making it a rare and exciting find for paleontologists.

Read more at Nasdaq: Better “Magnificent Seven” Stock: Apple or Amazon?