Apple vs. Amazon: Which Stock to Buy for Long-Term Growth?

NEW YORK, NY — Apple Inc. and Amazon.com Inc. have grown significantly, becoming major players in the technology market. As of November 12, Apple’s market capitalization exceeds $4 trillion, while Amazon’s stands at $2.6 trillion.

Investors often seek to understand which company might offer better long-term potential. Apple is well-known for its sleek devices, including the iPhone, iMac, and iPad. The iPhone, which is central to its business model, accounted for about 50% of Apple’s reported sales of $416.2 billion for fiscal year 2025. Despite soft sales in previous years, iPhone sales rebounded by 6.1% year-over-year to $49 billion in the fourth quarter.

The launch of the iPhone 17 in mid-September has also generated excitement and higher sales growth in the U.S. and China compared to its predecessor.

While the iPhone continues to be a dominant force, Apple’s services sector has grown rapidly, contributing 26% of the total revenue and showing a 15.1% increase in sales during the last quarter. Despite promising launches, initiatives like the Apple Car and Vision Pro headset faced delays and disappointments.

In contrast, Amazon’s initiatives extend beyond e-commerce; it offers devices like Alexa and Kindle, and operates physical stores including Whole Foods. Amazon Web Services (AWS) has the lowest sales figures but contributes over 60% of Amazon’s operating profits, generating $93.1 billion in sales for the nine months leading to the end of September.

AWS is experiencing explosive growth, with a third-quarter increase of over 20% in sales to $33 billion. Its strong position in the cloud business gives it a competitive edge with high barriers to entry and a significant market share of 29% as of the third quarter.

Investors might find both stocks appealing based on current valuations. Both Apple and Amazon shares have lagged behind the S&P 500’s increase of 16.5% this year, with Apple up 9.2% and Amazon 11.3%. Apple trades at a P/E ratio of 37, while Amazon trades at a multiple of 35.

Some analysts suggest that Amazon has an edge due to its fast-growing AWS segment, making it a potentially better investment choice than Apple. Notably, Apple’s services and product launches face competition and challenges, while AWS continues to thrive.

For those looking to diversify their portfolios, recent recommendations from investment advisors have highlighted ten other stocks as better investment opportunities, excluding Apple.