Over the weekend, investors were digesting the quarterly results from tech giants Amazon, Apple, and Meta Platforms. While Meta Platforms stole the show with its first-ever dividend announcement, both Amazon and Apple exceeded top and bottom line expectations. Let’s take a closer look at their performance to assess potential opportunities for investors.
Amazon Q4 Review
Rounding out fiscal 2023, Amazon reported Q4 earnings of $1.01 per share, surpassing the Zacks Consensus by 24%. Q4 earnings soared 380% from the comparative quarter, with sales of $169.96 billion beating estimates by 2% and leaping 14% YoY. Amazon attributed its success to a record-breaking holiday shopping season. Despite slightly missing estimates in its AWS segment sales, its total sales for FY23 were up 12% to $574.8 billion, with a net income of $30.4 billion, marking a swing from a net loss of -$2.7 billion a year ago.
Apple Q1 Review
Apple’s Q1 earnings of $2.18 per share set a new record high, up 16% YoY, topping estimates by over 1%. Quarterly sales of $119.57 billion rose 2% YoY, and the company reported a net income of $33.92 billion, reflecting a 13% jump from the prior year quarter. The growth was primarily fueled by iPhone sales and record-high revenue in its Services segment. While iPhone sales beat estimates, Services sales fell slightly short.
Bottom Line
Following their favorable quarterly results, Amazon’s stock currently sports a Zacks Rank #2 (Buy), while Apple lands a Zacks Rank #3 (Hold). It’s essential for investors to monitor Apple’s warning of softer iPhone sales during the current quarter, despite the company’s promising track record.
