Tech giants Amazon (AMZN) and Apple (AAPL) — two members of the ‘Magnificent 7’ group — are gaining in pre-market trading after both companies reported better-than-expected earnings results. In a new report, Goldman Sachs reaffirmed its positive outlook on the stocks, citing strong fundamentals, rising user engagement, and the growing role of AI in driving revenue and profit margins.
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In their latest results, Amazon reported Q3 earnings of $1.95 per share, beating analysts’ estimates of $1.57 per share, as revenue rose to $180.2 billion, driven by strong growth in its AWS cloud division and advertising business. Meanwhile, Apple posted fiscal fourth-quarter earnings of $1.85 per share, up 13% from a year earlier, with revenue rising 8% to $102.5 billion, supported by steady iPhone demand and robust services growth.
Goldman Sachs Stays Bullish on Amazon
Goldman Sachs kept a Buy rating on the stock and increased the price target to $290 from $275. The firm said that while investors may watch consumer spending closely, Amazon’s core e-commerce, cloud, and ad businesses remain strong.
The firm highlighted that AWS should gain from rising demand for AI tools among large companies, while Amazon’s retail and delivery network keeps getting more efficient and lowering costs. He added that Amazon’s advertising unit is growing quickly with high profit margins, becoming a bigger source of earnings.
Goldman expects Amazon to keep improving both sales and margins in the coming years, supported by its mix of strong businesses and steady investment in new technology.
Goldman Sees Multi-Year Growth Cycle Ahead for Apple
Goldman raised the price target on Apple to $320 from $279 and kept a Buy rating. He said Apple’s latest results showed solid underlying demand, with the iPhone revenue miss tied to supply limits rather than weaker sales.
Ng expects Apple to enter a multi-year product upgrade cycle, supported by new AI features, including a more advanced version of Siri and fresh AI partnerships. He also pointed to Apple’s plans for new designs, such as a potential foldable iPhone in 2026, and ongoing investment across its product line.
On the services side, revenue rose 15% year over year, lifted by higher subscriptions for iCloud+, AppleCare, and AppleOne. The firm added that Apple’s margins remain strong, helped by a richer product mix and greater use of in-house technology.
Which Is the Best Tech Stock?
We used the TipRanks Stock Comparison Tool to see which of these ‘Magnificent 7’ names analysts favor more. Amazon holds a “Strong Buy” consensus rating, supported by a 20.8% upside potential over the next 12 months. In comparison, Apple carries a “Moderate Buy” rating, with analysts expecting a modest 2.7% downside from current levels.
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