Amazon and Apple Soar Amid Strong Earnings and Growth Potential
Two prominent stocks have recently hit all-time highs, but their growth potential remains significant. Amazon (NASDAQ: AMZN) reached an all-time high after its strong Q2 2026 earnings report, with its cloud computing unit Amazon Web Services (AWS) experiencing a 37% revenue surge to $42.2 billion. AWS's custom chips, including Trainium AI accelerators and Graviton CPUs, have become a significant business, generating $25 billion in revenue per year.
Amazon's e-commerce business is also performing well, with North American revenue up 16% and international revenue up 15%. The company continues to see strong operating leverage due to investments in robotics and AI. Additionally, Amazon has become one of the world's premier digital advertisers, with its high-margin business growing 26% to $19.8 billion last quarter.
Despite reaching an all-time high, Amazon trades at a forward price-to-earnings (P/E) ratio of just 23 times, making it a historically attractive valuation compared to peers like Costco and Walmart.
Another stock with significant growth potential is Apple (NASDAQ: AAPL), which hit its all-time high before its fiscal Q3 2026 earnings report. The company's tightly integrated hardware and ecosystem lead to high customer retention, directly feeding into its high-margin services business. Apple's position as the top high-end smartphone maker and compounding business model make it a long-term winner.