Trade Call: Buy Amazon Over Apple Based on Growth Metrics

2 months ago

Parkev Tatevosian, CFA

"Overall, if I had to pick between these two companies, I would pick Amazon as the better stock to buy. I believe Amazon's advantages and prospects looking ahead are stronger than Apple's advantages and the headwinds, the impacts of tariffs are going to be significantly negative for each of these two companies. But I think that Amazon's AWS segment gives it some protection against the impacts of tariffs and its international operations also allow each of these companies to mitigate some of the impacts of tariffs as well. But the tariffs will be negative for each of these two companies. But I think there will be more of a negative uh to Apple unless Apple is able to continue to be able to work and negotiate exemptions for its products and its product categories, which it may or may not be able to do."

The host explicitly favors Amazon over Apple, citing superior revenue growth, improving operating cash flow trends, and the defensive nature of Amazon's AWS segment as key factors. He believes that while both companies face challenges from tariffs, Amazon's strategic investments in cloud computing provide a more resilient growth trajectory, making it the preferable long-term stock pick.

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