- AMZN
- AAPL
- NVDA
Long-timeApple(NASDAQ: AAPL) and Amazon(NASDAQ: AMZN) shareholders have undoubtedly been pleased with the stocks’ performance. Apple has a market cap of $4.9 trillion, and Amazon’s market cap equals $2.8 trillion, as of Sept. 11. They have grown to become among the most valuable companies in the world.
In fact, a $20,000 investment in Apple shares 10 years ago would have grown to $277,000, including dividends. That same amount invested in Amazon stock would be worth $133,000.
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However, past success doesn’t guarantee future results, of course. Which company’s stock looks poised to do better over the next decade? It’s time to look at each company’s fundamentals before making the investment decision.
Apple’s fundamentals
Apple has a new CEO, John Ternus, who replaced Tim Cook on Sept. 1. Ternus was the company’s senior vice president of hardware engineering.
This coincides with Apple’s launch of its iPhone Duo. The new phone is foldable and has features such as a bigger screen and enhanced camera functions. It has a hefty $2,000 price tag, but that’s in line with other foldable phones.
Ternus needs the iPhone to succeed since the product generates most of Apple’s sales. For the first three quarters of the fiscal year (ended June 27), iPhone accounted for 54% of the company’s top line. During the period, the product’s sales grew a healthy 22.4% year over year.
The higher-margin services business, which includes advertising, product support, the App Store, and payment services, continues to grow. Over the nine-month period, the category’s sales increased 14% versus a year ago to $91.7 billion.
These two businesses helped drive Apple’s third-quarter sales 16% higher to $109.4 billion.
However, while Apple has been able to produce new versions of its iPhone, it hasn’t had much innovation outside of this product. For instance, the company abandoned its self-driving car efforts a couple of years ago. And its hyped Vision Pro product never really found commercial success.
Amazon’s fundamentals
People may know Amazon for its online marketplace. But the company has become so much more than that. It also has physical stores, devices (e.g., Ring), Prime (which includes a streaming service), advertising, and Amazon Web Services (AWS), its cloud-computing business.
