Both Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN) received the glad tidings that many companies vie for, analyst upgrades. They not only provide feedback about future results of managerial decisions, but also about the validity of the company’s business model. On Bloomberg Scarlet Fu, reported on the new developments for the two tech companies.
“[…] An upgrade by Credit Suisse on solid and sustainable iPhone volume base and also the prospect of cash returns and earnings momentum […],” reported Fu.
Apple Inc. (NASDAQ:AAPL)’s new iPhones have stirred considerable amount of trouble for other smart phone manufacturers including Samsung, which has revised its profit forecasts. While a strong and accelerated share buyback program has won the favour of many investors, it is certainly not the only thing that they have locked their eyes on.
Many are waiting to see the revenue generation capabilities of Apple Inc. (NASDAQ:AAPL)’s new products like Apple Pay and Apple Watch.
Moving on to the other happy camper, Amazon.com, Inc. (NASDAQ:AMZN), a very different set of reasons drove the ratings of this e-commerce giant upwards.
“[…] Citigroup Inc(NYSE:C) upgraded the stock as well to a buy saying that holiday data points look good for the fourth quarter results and gross margins will rise in 2015, a reversal from 2014 […],” informed Fu.
Increasing gross margins will definitely be music to Amazon.com, Inc. (NASDAQ:AMZN)’s investors. Many had started to worry about the razor sharp margins philosophy of Amazon after a lacklustre earnings report for the last quarter.
Despite a dip in the Dow Jones yesterday of about 274 points, both the companies did well in yesterday’s trading. Amazon.com, Inc. (NASDAQ:AMZN) was up about 1.14 percent and was trading at $294.74, while Apple Inc. (NASDAQ:AAPL) was up about 0.9 percent and was seen near the $110 level when the closing bell rang.
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