Market shows signs of stability after selloff, Amazon and Microsoft expected to rebound

From Nasdaq Corporate Solutions: 2024-08-06 18:30:00

After a week of selloff, the S&P 500 and Nasdaq rose 1% today, showing signs of stability. Amazon and Microsoft stocks, up just over 7% in 2024, are being watched by investors for a potential rebound after both companies exceeded quarterly earnings expectations.

Amazon Web Services (AWS) sales jumped 18% to $26.28 billion, surpassing estimates of $25.86 billion by 1%. Microsoft’s Azure cloud helped generate $28.51 billion for its Intelligent Cloud segment, a 19% increase from the previous year, although slightly missing estimates.

Amazon and Microsoft are projected to see sales growth around 10-13% in fiscal 2024 and 2025, with significant increases in earnings per share for both companies. Amazon’s stock is trading at a discount compared to its five-year median, while Microsoft’s stock is slightly below its own median.

Both Amazon and Microsoft hold a Zacks Rank #3 (Hold) and could present buying opportunities with recent market volatility. Considered sound long-term investments, their growth and attractive valuations make them appealing picks for investors looking ahead.

Zacks experts have identified a top stock with the potential to double in value. This company, targeting millennial and Gen Z audiences, generated nearly $1 billion in revenue last quarter, presenting a compelling opportunity for investors. Jump aboard now for potential explosive upside.



Read more at Nasdaq Corporate Solutions: Time to Buy the Recent Dip in Microsoft or Amazon’s Stock?