Last week, Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT) posted quarterly results.
MSFT stock rose the most and is the strongest stock to buy. In its fiscal third-quarter report, Microsoft reaffirmed its strength in sales of Azure solutions.
Microsoft Azure benefited from the ongoing demand for AI services. The firm brought its capacity online faster than markets expected. As a result, shareholders should expect Azure AI services to grow by 16%-20% this year.
Apple traded lower after posting results on May 1. Still, the firm introduced a new $100 billion share buyback program. In the last quarter, Apple earned $1.65 per share. Revenue increased by 5.1% Y/Y to $95.36 billion. iPhone sales accounted for $46.84 billion in revenue.
Few shareholders are questioning Apple’s wisdom of buying back stock when the price-to-earnings are around 30 times. The firm could buy treasuries, earning 4.3% in interest income. The company’s confidence suggests that AAPL stock will bounce back in the next few weeks.
Amazon posted revenue growing by 8.7% Y/Y to $155.7 billion. AWS sales grew by 17% Y/Y. Customers will want more AWS computing power. Amazon brought more P5 GPU instances online since February. It is buying more Nvidia (NVDA) chips to power its Tranium 2 systems. AMZN stock is a strong buy since AI demand results in triple-digit percentage revenue growth.
