From Nasdaq: 2024-07-31 13:11:00

Apple AAPL and Amazon AMZN are set to report quarterly results on Aug 1, investors are eager to see the impact of AI on their growth. The Magnificent 7 group, including Tesla and Meta Platforms, has been benefiting from the AI trend. Spending on AI software is expected to see substantial growth in the coming years, creating opportunities for these tech giants.

Apple has a history of beating earnings estimates, with expectations for low single-digit revenue growth and an increase in earnings per share. Meanwhile, Amazon expects 7-11% growth in net sales for the second quarter. Despite underperforming Amazon’s stock this year, Apple is trading at a higher Price/Sales ratio and is facing challenges in the Chinese market, while also seeing growth in its services segment.

Amazon’s success is driven by strong Prime momentum, a growing advertising business, and the dominance of AWS in cloud services. With a Growth Style Score of A and current undervaluation, Amazon presents a better investment opportunity ahead of its earnings release. The company’s strong global presence, expanding smart home offerings, and momentum among small and medium businesses are additional positives for investors.



Read more at Nasdaq: AAPL or AMZN: Which Mag 7 Stock Should You Buy Before Earnings?