Zacks Investment Research
30 Jul 2026, 23:36 UTC · 11w ago
Amazon & Apple Beat Earnings, Head Separate Ways
Impact · against what's priced in
Amazon's strong AWS growth and earnings beat provide the first concrete evidence for the FCF and growth normalization the market has been skeptical of, making it the primary catalyst here. Apple's beat is largely a confirmation of its mature-growth status, while Meta's AI ambiguity introduces new risk to its valuation.
- AMZN+0.50
Challenges what's priced in
- The price assumes
FCF normalization: 2026-27 capex of $200-220bn earns its return and FCF margin recovers
AWS growth of 36.7% to $42.2 billion and an EPS of $5.75 (vs $1.83 consensus) provide strong evidence for the high-growth AI return that the market previously declined to credit in its valuation.
What AMZN's price assumes · Feb 24
