The markets started off the second half of 2025 with a march toward new record-high levels. This boost is supported by several factors, including investors’ more relaxed view of President Trump’s tariff policy, as new trade deals are worked out, and the continued expansion of AI technology. The AI boom is especially prominent among the so-called Magnificent 7, the giant mega-cap stocks.
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Now, the earnings numbers for 2Q25 are coming in, and the Mag 7 stocks are in the queue to report. Microsoft and Meta have already released strong results, and their shares jumped in response. Today, we’ll hear from Apple and Amazon, and analysts at JPMorgan are predicting a better outlook.
In some ways, it’s easy to see why. Both companies rest on solid business models, offer a strong lineup of products, and have been notably successful at generating long-term returns. In addition, both have the deep pockets and extensive customer bases necessary to maintain those returns.
With that in mind, let’s take a closer look at Apple and Amazon, using the latest data from the TipRanks platform to see how the Street views them, and the comments from JPMorgan analysts to understand why the bank is picking these two as the Magnificent 7 stocks to buy ahead of earnings.
Apple (AAPL)
We’ll start with Apple, one of the best-known names in the world of personal computing and digital networking. Apple made waves a few years ago, when it became the first publicly traded company to exceed $1 trillion in market cap; today, it’s one of 10 companies at that height, where its market cap of $3.16 trillion ranks it as the third-most valuable company on Wall Street.
In addition to its devices, Apple offers a wide range of services, including streaming music and TV, cloud computing, online games, and even online payment services. Last year, Apple introduced a major enhancement to its services, with the release of Apple Intelligence, the company’s AI system. Apple Intelligence provides users with an array of AI-enhanced tools, such as writing partners, image creation, and even app development assistants. The AI is also integrated into Apple’s Siri, the online assistant familiar to users of Apple devices.
All that said, Apple’s successes have not come without bumps in the road. The company has a high exposure to the Chinese market, in both the supply chain and the end market, making it vulnerable to the uncertainties of President Trump’s tariff and trade policy, particularly its punitive stance toward China. We should note that in its last reported quarter, fiscal 2Q25, Apple’s iPhone sales in China missed expectations – but that was balanced by stronger sales in North America and India, and by strong growth in services.
Looking at the numbers, we see that Apple brought in a total of $95.4 billion at the top line in fiscal Q2, which ended on March 29. This figure was up 6% year-over-year, and it beat the forecast by $652 million. Within that total, Services revenue was up 12% from the prior year, and its $26.6 billion total represented an all-time high for the segment. While total iPhone sales only showed a 2% year-over-year increase, Apple management did state that it saw no evidence of customers bringing sales forward to beat tariff implementation. At the bottom line, Apple reported an EPS of $1.65, 3 cents per share better than had been anticipated.
Looking ahead to the print today, the Street expects Apple to report fiscal Q3 earnings of approximately $88.97 billion. While this represents a fall-off from fiscal Q2, we should note that Apple’s fiscal calendar is designed to put its strongest quarter, fiscal Q1, in sync with the holiday shopping season. Historically, Apple’s fiscal third quarter, covering the early summer period, is its slowest of the year.
J.P. Morgan analyst Samik Chatterjee covers Apple, and he takes a bullish stand on the shares. Looking at the company’s prospects going forward, the 5-star analyst lays out a case for Apple that should please investors.
“The setup for AAPL shares on a near-term basis is better than imagined… As we step into F3Q (Jun-end) results, which will benefit from robust consumer demand to-date and a lower impact on the hardware supply chain compared to expectations 90 days ago, we anticipate greater resilience and modest upsides relative to lowered expectations for Product revenues and profits. Additionally, heading into F4Q (Sep-end), while concerns remain regarding the sustainability of consumer demand, with F4Q (Sep-end) typically marked by inventory fill of new iPhones into the retail channel, we expect these demand sustainability challenges to have a limited impact on the F4Q outlook relative to the lowered bar of investor expectations,” Chatterjee noted.
This positive outlook leads naturally into an Overweight (i.e., Buy) rating. Chatterjee’s $250 price target on AAPL suggests that the stock will gain ~20% in the next 12 months. (To watch Chatterjee’s track record, click here)
Overall, Apple’s stock has a Moderate Buy consensus rating, based on 26 recent reviews that include 13 to Buy, 12 to Hold, and 1 to Sell. The shares are priced at $208.91, and their $228.11 average price target implies an upside of 9% by this time next year. (See AAPL stock forecast)
Amazon (AMZN)
Amazon is another of the world’s iconic brand names. The company has made a name for itself in many ways – as a tech survivor of the dot.com bubble, as the world’s largest online retailer, and as a leader in online services and cloud computing, to name just a few. Amazon’s market cap of $2.45 trillion ranks it right behind Apple among Wall Street’s top-valued companies.
Among online retailers, Amazon simply has no peer. The company generated $650 billion in the 12 months ending on March 31 of this year, of which its online retail business made up between 20% and 25%. Amazon boasts that its customers can find any product they want or need on the site, and it accompanies that unmatched product line-up with delivery service to almost any location in the world.
Online retail may make up Amazon’s core, but the company has expanded its work far beyond simply selling stuff. Amazon offers a wide array of online services, available through subscription, including such popular offerings as streaming TV, audiobooks, and data storage. The company’s AWS cloud computing platform has become an increasingly important revenue generator, and – along with Microsoft Azure and Google Cloud – dominates the market for subscription cloud services. In recent years, Amazon has been integrating AI tools and services into AWS, providing another layer of benefit for customers.
We’ll see Amazon’s 2Q25 results after the closing bell today, but a look back at the 1Q25 results may prove informative. Amazon had total revenues of $155.7 billion in the first quarter, $546 million ahead of the estimates and up nearly 9% year-over-year. Of that total, AWS accounted for $29.3 billion, or 23% of the total. AWS revenue was up 17% from the first quarter of 2024. Amazon realized a $1.59 EPS for Q1, a figure that was 23 cents per share better than the forecasts.
When we turn to the JPM view of Amazon, we find the firm’s 5-star analyst Doug Anmuth describing AMZN as his ‘top idea.’
“We remain bullish as AMZN drives non-AI growth & tightens the GenAI gap, which supports improved AWS trends in 2H, though 2H AWS margins could compress against infra spend. N.America margins should benefit from inbound regionalization & inventory placement, SD facility buildout, & automation/robotics, supporting FCF ramp despite heavy 2025 capex growth. Macro trends around consumer spend have been better than expected. Valuation attractive on FCF and P/E,” Anmuth opined.
To this end, Anmuth rates AMZN shares as Overweight (i.e., Buy), and his $255 price target points toward a one-year potential upside for the shares of 8%. (To watch Anmuth’s track record, click here)
All in all, Amazon has picked up 45 recent analyst ratings, and the lopsided split of 44 Buys to 1 Hold gives the stock its Strong Buy consensus rating. Shares in AMZN are currently trading for $236.14, and the $259.76 average target price suggests a gain of ~11% on the one-year horizon. (See AMZN stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.