Apple (AAPL) and Amazon (AMZN), two of Wall Street’s true heavyweights, have long been mainstays of many investors’ portfolios, and, as part of the Magnificent 7, they’ve helped propel the market higher since the end of the bear market back in 2022.
But given the divergence in returns over the last few months, which is the better long-term investment going forward?
With that in mind, I thought it might be useful to break it down with an Apple vs. Amazon stock tale of the tape.
There’s a lot to like about both companies, of course.
Apple remains a cash cow, generating $216 billion in gross profits over the last 12 months, and it’s been using that cash to buy back shares (as you can see from the latest $100 billion buyback authorization) in an effort to flex its financial muscle and lure more investors.
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Amazon, meanwhile, is arguably the most diversified company in America, having revolutionized the way people shop, launched a video streaming service that is neck and neck with Netflix (NFLX) in market share, created a profitable cloud computing wing, etc.
But neither company is without its flaws.
Apple has become something of a one-trick pony, churning out a seemingly endless line of iPhones but failing to innovate the way it did under the late Steve Jobs. And while it may be fiscally prudent not to spend money hand over fist on the newest AI models (the way some of its peers are), it also leaves the company without the attention-grabbing headlines that the other Mag. 7 companies are generating.
Even their foray into streaming has been a mixed bag, with the Apple TV+ streaming service garnering only 12% of streaming eyeballs despite the success of shows like Ted Lasso, The Morning Show, Severance, and, more recently, Pluribus.
The problems with Amazon, meanwhile, have more to do with the stock itself—namely, its performance. AMZN has been firmly in the middle of the pack of the Mag. 7 so far in 2026 (up only 4.4%) and is the worst Mag. 7 stock over the last five years (up just 41%).
So let’s take a closer look at AAPL and AMZN, broken into a few key numbers:
Tale of the Tape: Apple (AAPL) vs. Amazon (AMZN)
Trailing P/Es: AAPL 35.3, AMZN 31.6
Forward P/Es: AAPL 31.1, AMZN 31.2
Estimated next-year sales growth: AAPL 8.4%, AMZN 13.0%
Cash per share: AAPL $4.66, AMZN $13.30
Institutional ownership: AAPL 65.8%, AMZN 68.0%
On value, Amazon has the edge on trailing PE, but it’s neck and neck looking forward.
Amazon has more cash and cash per share, with $143 billion in total cash compared to “only” $69 billion for Apple. Meanwhile, the companies are both heavily owned by institutions, but AMZN does have a slight edge there.
From a fundamental perspective, you’d have to say that’s advantage Amazon.
So now let’s move to some technical analysis of the two stocks.
Like most growth stocks, AMZN was flying high until the end of 2021, touching as high as 187 a share (split-adjusted) before pulling back to the low 100s in May and June, bouncing in the late summer, and selling off to pre-pandemic levels to close out the year. Since the end of 2022, however, it’s been a totally different story, with AMZN up 181%.
Apple stock has also done well, rising more than 124% since the beginning of 2023. But it’s come on the heels of far less volatility, as AAPL fell only about 28% in 2022’s bear market (from peak to trough), compared to AMZN’s 54% decline.
In essence, AMZN was flying higher going into the bear market, so even though its three-plus-year returns are trouncing APPL’s, much of that is the bounceback, which net-net, has made AAPL the better holding over the last five years.
The key takeaway is that AMZN does better in bull markets but worse in bear markets (beta of 1.44 vs. a beta of 1.09 for AAPL), so given that the bull market remains in full force, I prefer AMZN in the battle of Apple vs. Amazon stock.
AMZN Stock Is the Winner
Both AAPL and AMZN are stocks you’d be wise to hold in your long-term or retirement portfolio. But I think Amazon has the more diversified list of offerings.
If you want to know what other, less obvious growth stocks we’re currently recommending, consider taking a trial subscription to Cabot Top Ten Trader. It’s a weekly list of the market’s 10 best momentum stocks, complete with loss limits and buy ranges.
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*This post is periodically updated to reflect market conditions.
