Apple vs Amazon: Which Stock is Poised for Future Growth

The performance of Apple and Amazon stocks over the past decade has been impressive. A $20,000 investment in Apple shares made ten years ago would have grown to $277,000, including dividends. Meanwhile, the same amount invested in Amazon stock would be worth $133,000.

Despite their success, predicting future performance is uncertain. To evaluate which company's stock looks poised to do better over the next decade, we need to examine each company's fundamentals.

Apple has a new CEO, John Ternus, who replaced Tim Cook on September 1st. The company launched its iPhone Duo, a foldable phone with enhanced features and a hefty $2,000 price tag. However, Apple relies heavily on the iPhone for sales, which accounted for 54% of the company's top line in the first three quarters of this year.

Amazon has diversified its business beyond e-commerce, with segments such as AWS (Amazon Web Services), Prime, advertising, and physical stores performing well. Its second-quarter sales grew 20% compared to a year ago, and operating income increased 43.2%. The high-margin AWS business continues to drive growth, with quarterly operating income increasing 63.6% to $16.6 billion.