Zacks Investment Ideas feature highlights: Tesla and Amazon

For Immediate ReleaseChicago, IL – November 25, 2024 – Today, Zacks Investment Ideas feature highlights Tesla TSLA and Amazon AMZN.These Magnificent 7 Reports Impressed Investors: AMZN, TSLAThe Q3 reporting cycle has officially ended for the Mag 7 group following the release of Nvidia’s quarterly results yesterday. The group posted strong growth, though post-earnings reactions weren’t favorable for all.But reports from Tesla and Amazon did spark post-earnings positivity, with shares of each seeing positive price action following their releases.But what was there to like in each respective release? Let’s take a closer look.Amazon's AWS Results ImpressConcerning headline figures in Amazon’s quarterly release, the company exceeded both consensus EPS and sales expectations handily. EPS grew a sizable 70% year-over-year, whereas sales of $60 billion reflected an 11% climb from the year-ago period.However, the real highlight of the results was the AWS results. AWS sales jumped 19% year-over-year to $27.5 billion, matching the same growth pace we saw last quarter. While the growth pace didn’t reflect an acceleration, the results overall confirm underlying momentum.Further, the profitability picture for AWS jumped higher, with operating income of $9.3 billion well above the $5.4 billion mark in the year-ago period. Below is a chart illustrating the company’s AWS results against our consensus expectations, with the recent $27.5 billion print falling $127 million short.Like Tesla, analysts raised their earnings expectations for Amazon following the favorable release, with the stock boasting a Zacks Rank #2 (Buy).Overall, the company’s dominant stance in the cloud paints a bright outlook for the company, particularly in the midst of this AI frenzy that we’ve all become accustomed to. AWS is the dominant player in the cloud computing market, flexing a significant market share globally. It provides various services, including computing power, storage, databases, and AI/ML tools.Tesla Sees Higher ProfitabilityWhile EV delivery/production numbers were important, the real highlight of the release that caused shares to perk up was margin expansion, with the company’s gross margin expanding nicely to 19.8% vs. a 17.9% print in the same period last year.Notably, Tesla reported its lowest-ever level of cost of goods sold (COGS) per vehicle throughout the period, which bodes favorably for upcoming periods as well. Analysts have raised their EPS expectations across the board following the release, with the stock now holding the highly-coveted Zacks Rank #1 (Strong Buy).The stock’s current momentum is undeniable, partly boosted by the recent U.S. election. Growth is expected to resume in its next fiscal year, with our consensus FY25 expectations suggesting 30% EPS growth on 16% higher sales.Bottom LineWith Nvidia's quarterly release finally out of the way, the Q3 reporting cycle for the broader Mag 7 group has ended. The group overall posted strong growth, though Amazon and Tesla were among the few to see post-earnings momentum.A notable boost in profitability helped vault Tesla shares higher, with the stock also benefiting from the recent U.S. election. The company overall remains the prime selection for EV exposure, with growth expected to return in a big way during its next fiscal year.A strong showing from AWS in Amazon’s release aided the bullish action post-earnings, with the results reflecting underlying momentum. The company remains a solid pick for the AI frenzy given its dominant cloud computing stance, with an upcoming holiday season also potentially providing near-term tailwinds.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Tesla, Inc. (TSLA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks