Apple and Amazon are experiencing renewed business momentum. Apple’s services business and massive active device base have led to success. Amazon, after underperforming in 2025, has diversified its business and is now trading at an attractive price.

Apple’s services revenue grew 15% to $28.8 billion, contributing to its 13% increase in earnings per share. With a large active device base of 2.35 billion, Apple has a strong foundation for new services and AI features. Amazon reported 13% revenue growth, with AWS returning to 20% growth driven by AI demand.

Despite trading at 37 times earnings, Apple’s strong services momentum and loyal customer base justify its premium price. Amazon’s diverse business saw strong growth in e-commerce, advertising, and AWS, with AI driving significant improvements. Both companies offer growth opportunities but come with valuation risks.

Apple and Amazon are top picks for 2026. Apple offers high-margin services and a loyal customer base, while Amazon provides exposure to AI infrastructure. Both stocks, though not cheap, offer concentrated exposure to dominant U.S. tech franchises for forward-looking investors.

Consider other top stock picks from the Motley Fool’s Stock Advisor team for potential monster returns. While Apple may not be on their list, their picks have outperformed the market significantly, making them worth considering for long-term investment success. Join Stock Advisor to access the latest top 10 list. Don’t miss out on valuable insights for your investment decisions. See the 10 stocks recommended by experts. *Stock Advisor returns as of November 24, 2025. Daniel Sparks and his clients hold positions in Amazon and Apple. The Motley Fool recommends and has positions in Amazon and Apple. Make informed choices with Stock Advisor.

Read more at Nasdaq: Here Are My Top 2 “Magnificent Seven” Stocks to Buy for 2026