Amazon and Apple Continue to Soar Amidst Challenges

Amazon and Apple are two brilliant growth stocks that have recently hit all-time highs with plenty of room to run, according to recent reports. Amazon's cloud computing unit, Amazon Web Services (AWS), is a major contributor to its success, with revenue surging 37% to $42.2 billion last quarter. AWS has a strong backlog backed by partnerships with leading frontier model companies Anthropic and OpenAI, and CEO Andy Jassy predicts it could become a $1 trillion revenue business.

The company's custom chips, including Trainium AI accelerators and Graviton central processing units (CPUs), have also become a significant source of revenue, reaching a run rate of $25 billion. Amazon's e-commerce business continues to perform well, with North American revenue up 16% and international revenue up 15%. The company has also seen strong operating leverage due to its investments in robotics and AI.

Apple is another stock that has continued to grow despite recent setbacks. Its tightly integrated hardware and walled-garden ecosystem lead to high customer retention, which directly feeds into its high-margin services business. While the stock is not cheap, with a forward P/E of 32 times fiscal 2027 estimates, Apple's position as the top high-end smartphone maker and its compounding business model make it a long-term winner.