ZACKSยท2025-10-28 21:46Core Insights - Amazon and Apple are under pressure as they prepare to release quarterly results, having lagged behind other Mag 7 stocks this year [1] - There is optimism that AI advancements could provide a boost to both companies' stock performance [2] Amazon's Performance - Analysts are looking for updates on Amazon's cloud growth and profitability, particularly from its AWS segment, which is expected to report a 17% revenue increase to over $30 billion in Q3 [3] - Overall, Amazon's Q3 sales are projected to rise 12% to $177.88 billion, with earnings expected to increase 10% to $1.58 per share [4] Apple's Performance - Wall Street is focused on how trade tensions with China may affect Apple's outlook, but the iPhone 17's AI features are helping to mitigate concerns [5] - Apple's Q4 sales in China are anticipated to grow 4% to over $18 billion, while the Services segment is expected to expand 13%, pushing annual services revenue above $100 billion for the first time [6] - Overall, Apple's Q4 sales are expected to increase 6% to $101.19 billion, with quarterly EPS projected to rise 5% to $1.73 [6] Valuation Comparison - Amazon and Apple are in the middle of the pack in terms of price-to-forward earnings valuation at just over 30X, with Amazon having a more reasonable price-to-forward sales multiple of 3.4X compared to Apple's 9.1X [8][9] Zacks Rank - Amazon holds a Zacks Rank 2 (Buy) due to strong EPS growth and positive revisions for fiscal 2025 and FY26, while Apple has a Zacks Rank 3 (Hold) as EPS revisions have slightly declined despite steady growth [11]