Amazon and Apple Soar as Investors Bet on Long-Term Growth
Two high-growth stocks, Amazon (AMZN) and Apple (AAPL), have recently hit all-time highs, and analysts believe they still have room to run. Amazon's cloud computing unit, Amazon Web Services (AWS), has been a major driver of growth, with revenue surging 37% to $42.2 billion last quarter.
AWS is benefiting from increasing demand for artificial intelligence infrastructure, and Amazon is aggressively expanding its capacity to meet this demand. The company has a $496 billion backlog backed by partnerships with leading frontier model companies Anthropic and OpenAI, and CEO Andy Jassy predicts that AWS could become a $1 trillion revenue business.
In addition to its strong cloud computing business, Amazon's e-commerce business continues to perform well, with North American revenue up 16% and international revenue up 15%. The company is also seeing strong operating leverage due to efficiency improvements from investments in robotics and AI.