Amazon and Apple: Which Iconic Company is the Better Investment?

Sunday, May 25, 2025 4:09 am ET1min read
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Amazon and Apple are two of the most iconic companies globally. The article compares Amazon and Apple stocks, with prices used from May 22, 2025. The video was published on May 24, 2025.

Amazon and Apple, two of the world's most iconic companies, continue to dominate the tech and retail sectors. This article compares their stocks, using data from May 22, 2025.

Amazon.com Inc. (AMZN)

Amazon reported mixed earnings for the latest quarter, with shares experiencing volatility due to tariff exposure. The company's North America Retail business line delivered solid results, but the margin was 20 basis points below expectations. AWS also delivered strong performance, with a 39.5% margin, driven by lower costs for power and infrastructure. Amazon's stock has been volatile, down 12.6% since the Q4 release but up 9.7% since the Q1 release. The consensus P/E for FY 2026 is 29x, up from 22x ahead of the quarter.

Apple Inc. (AAPL)

Apple delivered total revenues of $95.4 billion for Q2, in line with consensus, driven by $46.8 billion from iPhone. Greater China revenues were solid at $16.0 billion. The stock has been volatile but has lost only 1% since the Q2 release. It is down 11% since the Q1 release. The consensus P/E for FY 2026 is 29x, up from 24x ahead of the quarter.

Stock Performance

As of May 22, 2025, Amazon's stock was trading at $193.06, with a market cap of $2.054T. Apple's stock was trading at $198.53, with a market cap of $2.967T. Both stocks have shown significant volatility in recent months.

Revenue and Margin Expectations

Amazon's revenue estimates for FY 2025 and 2026 have moved up, with the North America segment projected to move from $416 billion this year to $449 billion in FY 2026. Apple's revenue estimates for FY 2025 and 2026 have also shown significant changes, with the iPhone revenue expectations stabilizing at between $202-203 billion.

Conclusion

Both Amazon and Apple have shown resilience in the face of market volatility and uncertainty. While their stocks have experienced significant fluctuations, their revenue and margin expectations remain positive. Investors should continue to monitor these companies closely as they navigate the challenges posed by tariffs and other economic factors.

References

[1] https://seekingalpha.com/article/4789367-amazon-apple-post-earnings-updates-to-outlook
[2] https://www.financecharts.com/compare/AMZN,AAPL/summary/price

Amazon and Apple: Which Iconic Company is the Better Investment?

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