Which of the Magnificent Seven Stocks is Superior?

Amazon (NASDAQ:AMZN) and Meta Platforms (NASDAQ:META) are two of the Magnificent Seven stocks that have been making waves in the market. While both companies have seen impressive stock performance over the past year, a closer look at their latest earnings reports reveals a stark difference in investor sentiment.

Amazon, the e-commerce and cloud-computing giant, has seen its stock soar 69% over the last year, with shares up 15% year-to-date. The company’s latest earnings report showed strong results, with adjusted earnings beating consensus estimates and revenue reaching $143.3 billion. Amazon’s cloud computing segment, AWS, saw a 17% year-over-year increase in revenues, showcasing the company’s success in implementing AI technology to drive growth.

On the other hand, Meta Platforms, the owner of social networks like Facebook and Instagram, reported adjusted earnings of $4.71 per share on $36.45 billion in revenue, surpassing consensus estimates. However, investors were disappointed with the company’s revised outlook, which included increased capital expenditures to support its AI roadmap. Meta’s Reality Labs division also continues to report significant losses, raising concerns about the company’s ability to turn new technologies into profits.

Overall, Amazon seems to be the clear winner in this comparison, with a bullish outlook supported by its valuation, successful AI implementation, and strong results from AWS. In contrast, Meta Platforms’ AI ambitions are still in progress, with increased spending raising questions about the company’s ability to generate returns from its investments.

Investors will be watching closely to see how both companies navigate the evolving tech landscape and capitalize on the opportunities presented by AI technology.