Analyst Tom Forte on Amazon AWS and Apple's Strategy Amidst Geopolitical Shifts

Amazon Web Services (AWS) Outlook

• 💡 Amazon Web Services (AWS) is facing challenges relative to Microsoft and Google, partly because it's less directly tied to OpenAI.
• 🚀 Despite layoffs, there's hope for sustained positive momentum from AWS, which could be a key stock driver for Amazon over the next 12 months.
• ✅ A reacceleration of growth in AWS revenue, meeting or exceeding the previous quarter's rate, could positively impact Amazon's stock.

Apple's Performance and Geopolitical Factors

• 🍎 The iPhone 17 is reportedly outperforming expectations, aligning with management's guidance for mid-to-high single-digit revenue growth.
• 🇨🇳 A sustainable trade deal between Presidents Xi and Trump would be hugely beneficial for Apple, given its significant reliance on China for logistics and sourcing.
• ⚡ The easing of geopolitical risk, including potential delays in China holding back rare earth minerals, is seen as positive for Apple.
• 🌏 Apple's supply chain is diversified, with assembly in China, India for iPhones in the US, and Vietnam for other products sold in the US.
• 📈 Ongoing dialogue at the highest levels between the US and China is considered good news for Apple, even if it only postpones renegotiations on critical resources like rare earths.