© Reuters. Amazon vs. Apple: Which Mega-Cap Stock is a Better Buy for the Second Half of 2021
Despite the stock market’s recent volatility on fears related to the spread of the COVID-19 Delta variant and concerns over rising inflation, we think it could be wise to invest in quality mega-cap stocks because they are expected to generate steady returns over the long run. Apple (AAPL) and Amazon (AMZN) are examples of this class of stock and should generate stable returns, dodging short-term market fluctuations. But which of these two stocks is a better buy now? Read more to find out.Tech giant Apple Inc. (NASDAQ:), which is known for its innovative products, such as the iPhone, crossed the $2 trillion market cap level in August last year. It has a market capitalization of $2.44 trillion currently. In comparison, with a market cap of $1.80 trillion, e-commerce giant Amazon.com, Inc. (NASDAQ:) has been making significant advances in the cloud space via Amazon Web Services (AWS) and in the entertainment space through its Amazon Prime offerings, among others.
U.S. retail sales unexpectedly rose 0.6% in June, and several financial companies reported strong earnings earlier this month. However, concerns surrounding the spread of the highly contagious COVID-19 Delta variant, high inflation, and a decline in consumer sentiment have been raising questions about the stock market’s stability. Against this backdrop, we think it could be wise to invest in mega-cap stocks because of their impressive market dominance and solid long-term growth prospects. So, both AMZN and AAPL are good bets to generate steady returns over the long term.
AAPL has gained 12.5% over the past month, while AMZN returned 4.6%. Also, AAPL’s 23% gain over the past nine months is significantly higher than AMZN’s 9.2% returns. Furthermore, in terms of their past years’ performance, AAPL is the clear winner with 51.7% gains versus AMZN’s 19.1% returns.
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