BUY These 2 Stocks & Don't STOP?

About this Video

• Video Title: BUY These 2 Stocks & Don't STOP?
• Channel: Stealth Wealth Investing
• Speakers: Jenny Horn
• Duration: 00:24:33

Introduction

This video analyzes the recent earnings reports of Apple and Amazon, contrasting Wall Street's reaction with the retail investor perspective. The speaker aims to separate hype from reality, offering insights into the companies' performance and investment potential.

Key Takeaways

• Apple's Earnings: Apple's earnings and revenue exceeded expectations, with iPhone sales up 13% year-over-year. Despite concerns about AI offerings, strong iPhone sales and a growing, high-margin services segment represent significant positive factors. Apple's massive free cash flow is a key strength.
• Amazon's Earnings: Amazon's cloud segment (AWS) showed 18% growth, exceeding consensus but lagging competitors like Microsoft and Google. While growth was strong, Amazon's overall operating income slightly missed estimates. Supply constraints limit AWS's growth potential, a factor overlooked by Wall Street. A new partnership with PepsiCo is a positive development.
• Market Sentiment vs. Reality: Wall Street's reaction to the earnings reports was, in some cases, at odds with the underlying financial performance. Retail investors are encouraged to look beyond the headlines and consider the complete financial picture.
• The AI Factor: The video highlights the ongoing AI race and suggests that the ultimate winner won't necessarily be the company with the "best" AI product, mirroring the iPhone's market dominance despite not always having the "best" features. Apple's approach to AI is more cautious, delaying launches until products are fully ready.
• Investment Strategies: The video suggests that Apple offers a steadier, less volatile investment compared to Amazon. Amazon, with its potential future infrastructure expansion (capex), may experience periods of apparent underperformance before significant growth resumes.