Key Points
Meta Platforms (NASDAQ: META) is set to report its Q2 earnings on July 29, while Amazon (NASDAQ: AMZN) will release its Q2 results on July 30. Both companies have faced stock performance challenges over the past year, although their underlying business operations remain strong.
Amazon’s growth in its AWS cloud unit is anticipated to accelerate as investments in AI infrastructure begin to pay off. The company experienced over a 9% increase in U.S. online sales during its Prime Day event in June. Additionally, the stock is trading at a forward P/E of below 25, making it a competitive buy compared to its brick-and-mortar peers.
On the other hand, Meta is pivoting towards cloud computing, exploring up to $10 billion in computing capacity through a partnership with Anthropic and aiming for approximately 14 gigawatts of AI capacity by 2027. Its forward P/E is around 17, indicating substantial room for growth as it enhances its AI capabilities and advertising models.
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