As the stock market sizzles in mid-2024, investors are eyeing two tech titans: Amazon.com, Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL). Both stocks have hit all-time highs – with Amazon hitting the $200.43 mark and Apple stock hitting the $220.38 mark during day trading on Tuesday.
With both stocks being extremely popular and watched by Wall Street investors, the common all-time-high event raises the burning question: which is the better buy?
Amazon Stock
Amazon's stock has soared, up 53.59% in the past year and 31.63% year-to-date. It recently touched a 52-week high of $200.43. With a market cap of $2.08 trillion and a P/E ratio of 56.02, Amazon is a heavyweight in tech.
Source: Benzinga Report
Analysts are bullish, with 43 ratings predicting a 12-month price target range of $200 to $245, averaging $222.50. This suggests a potential upside of 10.17%. The latest ratings from Needham, Wells Fargo, and B of A Securities, released between June 26 and July 1, imply a 10.66% upside with an average price target of $221.33.
Apple Stock
Apple's stock has also performed well, up 14.45% over the past year and 14.41% year-to-date, closing at $220.27 on July 2. With a market cap of $3.36 trillion and a P/E ratio of 34.26, Apple remains a market leader.
Source: Benzinga Report
However, analysts forecast a modest upside. With 33 ratings suggesting a 12-month price target range of $164 to $275, the average is $219.50, indicating just a 0.86% potential rise. Recent ratings from UBS, Needham, and Oppenheimer, dated June 28 and July 1, offer an average target of $220, a minimal 0.27% upside.
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Amazon Vs. Apple
Growth Potential: Amazon shows more promise with a 10.17% projected upside versus Apple's 0.86%.
Valuation: Amazon's P/E of 56.02 suggests higher growth expectations compared to Apple's 34.26, but also higher risk.
Market Position: Amazon dominates e-commerce and cloud computing, while Apple leads in consumer electronics. Apple's larger market cap and lower P/E might appeal to conservative investors, whereas Amazon's growth potential attracts those seeking higher returns.
Recent Momentum: Amazon's stronger recent performance hints at continued upward momentum.
Both Amazon and Apple are stellar investments.
However, Amazon appears to offer better growth prospects with a higher potential upside. Investors looking for robust growth may find Amazon more appealing, while those valuing stability might prefer Apple. As always, investment decisions should align with individual goals and risk tolerance.
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