Over the weekend investors were undoubtedly sifting through the quarterly earnings reports of tech behemoths Amazon AMZN, Apple AAPL, and Meta Platforms META last Friday. While Meta Platforms stole the spotlight by declaring its inaugural dividend, both Amazon and Apple surpassed their earnings and revenue forecasts. As investors weigh their options, let us delve into Amazon and Apple’s recent financial performances, and assess if it’s an auspicious time to add these tech giants to your portfolio.
Amazon’s Q4 Performance
Completing its fiscal 2023, Amazon revealed Q4 earnings of $1.01 per share, overshooting the Zacks Consensus of $0.81 per share by a whopping 24%. Moreover, Q4 earnings surged 380% from the corresponding quarter. The fourth quarter sales of $169.96 billion exceeded estimates by 2% and saw a 14% YoY increase. Amazon posted Q4 net income of $10.6 billion, a colossal leap from the $300 million a year before.
Image Source: Zacks Investment Research
Amazon attributed its stellar Q4 performance to a record-breaking holiday shopping season, which propelled 13% and 17% growth in its North America and International segment sales, respectively. Despite slightly missing estimates for its AWS segment sales at $24.2 billion, which were anticipated at $24.37 billion, Amazon’s cloud services business witnessed a 13% surge during Q4.
Image Source: Zacks Investment Research
Apple’s Q1 Performance
Reporting its fiscal first quarter results on Friday, Apple’s Q1 earnings of $2.18 per share surged 16% YoY to reach a new record high, exceeding the Zacks Consensus of $2.09 per share by 4%. Quarterly sales of $119.57 billion outperformed estimates by over 1% and rose 2% YoY. Apple boasted a net income of $33.92 billion, indicating a 13% increase from the preceding year’s quarter.
Image Source: Zacks Investment Research
Apple’s Q1 growth was fueled by robust iPhone sales, in addition to an all-time revenue high in its Services segment, covering Apple news, music, TV, App Store, iCloud, AppleCare, and Apple Pay. While iPhone sales reached $69.7 billion, surpassing estimates by 1%, Services sales slightly missed the consensus at $23.11 billion, falling short by 1% from the projected $23.39 billion.
Image Source: Zacks Investment Research
Final Thoughts
Post their impressive quarterly performances, Amazon currently holds a Zacks Rank #2 (Buy), while Apple secures a Zacks Rank #3 (Hold). Amazon’s favorable earnings outlook is poised for further positive revisions, yet investors should remain cautious of Apple’s cautionary note regarding subdued iPhone sales in the current quarter, despite the company’s substantial potential.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
