Investing can be a complex endeavor, and regardless of an investor’s risk tolerance and capital allocation, it’s beneficial to steadily build a position in established companies.
While these stocks may not yield extraordinary returns, they have the potential to generate consistent and gradual profits over time.
These companies have established themselves as top-performing stocks due to their positions in the technology sector.
Picked for you
However, allocating a substantial portion of your capital to Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) may not be advisable, but systematically acquiring the stocks over the next few years should guarantee long-term returns.
Apple (NASDAQ: AAPL)
Apple shares have climbed almost 53% this year, fueled by its reputation for reliability, which has overshadowed recent setbacks. The stock is currently priced at $191.3.
The company faced multiple declines in product sales in the past year due to macroeconomic challenges affecting consumer spending, leading to a 3% year-over-year drop in revenue for fiscal 2023.
Despite these economic challenges, Apple’s strong presence in consumer technology.
In the third quarter of 2023, where US smartphone shipments plummeted by 19% year-over-year, according to Counterpoint Research’s Market Monitor data, impacting competitors’ sales like Samsung and Alphabet (NASDAQ: GOOGL), by 26% and 37%, respectively.
Apple faced only 11% decline in iPhone sales while maintaining a 55% market share, yet continued to offer a 0.5% dividend yield to investors.
Amazon (NASDAQ: AMZN)
Amazon shares have surged by 73% this year, impressing investors with substantial profit growth in its retail divisions and a promising outlook in artificial intelligence.
Similar to Apple, Amazon faced challenges during an economic downturn. Its e-commerce sectors recorded nearly $11 billion in operating losses in fiscal 2022. A staggering amount considering that more than 80% of the company’s revenue is derived from its retail operations.
However, Amazon has demonstrated remarkable resilience this year, steering its e-commerce business back to profitability and highlighting why it is a company that investors can rely on for long-term growth.
In the third quarter of 2023, the retail giant’s North American segment achieved over $4 billion in operating income, a significant improvement from the $412 million in losses reported in the same period the previous year.
As Amazon trims costs in less successful business segments, it is significantly expanding its presence in AI through its cloud platform, Amazon Web Services (AWS).
AWS profiting from AI expansion
The AI market has experienced substantial growth this year, with projections indicating a compound annual growth rate of 37% through 2030.
The flourishing field of AI presents an exciting avenue for growth, and Amazon’s dominance in the cloud market through AWS could provide a significant advantage over the long term.
With the e-commerce business on a path to recovery and the prospect of profit from its AI endeavors, Amazon is poised for a bright future in the coming years.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.