With the ongoing artificial intelligence (AI) frenzy, Amazon (AMZN) and Microsoft (MSFT) are two of the most influential and widely discussed companies on the stock market. Both companies are rated as “strong buys” by Wall Street, with expectations for their stocks to rally in the future.
Amazon, founded in 1994, has become a global e-commerce and technology powerhouse due to its ongoing innovation, market expansion, and strategic acquisitions. The company’s stock has risen by 1,092.3% over the last 10 years, outperforming the S&P 500 Index. With a 30.2% year-to-date increase, Amazon is outperforming the market as a whole.
Amazon’s expansion into cloud computing (AWS), streaming services (Amazon Prime Video), and AI (Alexa) has been successful. AWS leads the global cloud computing market with a 31% market share. In the recent first quarter, AWS sales increased by 17% to $25 billion, contributing significantly to Amazon’s overall sales growth.
Microsoft, on the other hand, has a long-standing presence in the tech industry and has made significant investments in AI, particularly through its cloud computing platform Azure. The integration of AI into Microsoft’s flagship products has resulted in strong growth across all segments.
In Q3 of fiscal 2024, Microsoft Cloud revenue jumped by 23% to $35.1 billion, with Intelligent Cloud contributing 43% of total revenue. Microsoft’s total revenue increased by 17%, with adjusted earnings rising by 20% year over year.
Both Amazon and Microsoft are rated as “strong buys” by Wall Street analysts, with optimistic forecasts for their financial performance over the next two years. The global cloud computing market is expected to grow significantly, providing a profitable opportunity for both companies.
In conclusion, Amazon and Microsoft are positioned well for long-term success, with their diversified business models, strong financial health, and focus on high-growth areas like cloud computing and AI. Both companies make a compelling case for the best growth stocks to buy and hold for the future.