Should You Buy Amazon and Meta Platforms Stocks Before July 29?
2026-07-23 07:15
•Geoffrey Seiler •The Motley Fool
••••••• •••••• Axe Capital view
Is It Time to Buy Amazon and Meta Ahead of Earnings?
Amazon and Meta show promising AI-led growth before July 29 earnings, but South African investors need to weigh the dollar’s strength.
Amazon and Meta are gearing up for earnings that highlight AI-driven growth. Amazon's AWS cloud should benefit from increased demand for AI infrastructure, boosting margins through automation in logistics. Meta's pivot to AI-powered ads and its $10 billion cloud deal signal a turnaround from recent disappointments. For South African investors, this matters not only for direct exposure in local portfolios but because a stronger USD risks pressuring the rand (USD/ZAR). Tech-driven dollar strength raises costs for companies importing tech and capital goods, while inflation worries linger. Naspers and Prosus, trading heavily on global tech sentiment, are natural proxies but remain volatile. Buying into Amazon and Meta before results could pay off if AI revenues surprise, but rand weakness might offset gains. If the dollar eases or AI hype fades, these trades could stumble. this is just my opinion and not financial advice
I would watch Amazon and Meta closely and consider adding on any early earnings dips, but size exposure carefully due to rand risks. Hedge currency exposure or balance with rand-hedged assets like Naspers and Prosus.
- AMZN
- META
- USD/ZAR
- Naspers
- Stronger USD puts pressure on rand and local companies
- AI growth expectations may disappoint, hurting share prices
6/10
The article recommends buying Amazon and Meta stocks ahead of their earnings reports on July 29-30. Amazon is expected to show accelerating AWS cloud revenue growth driven by AI infrastructure investments and strong e-commerce profitability from robotics and AI efficiency gains. Meta is shifting its AI narrative positively with cloud computing partnerships, custom chips, and improved ad performance, trading at attractive valuations compared to peers.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Geoffrey Seiler
Categories: Equities, Earnings, Technology, AI, Semiconductors, Consumer, Retail
Tickers: AMZN, META, AVGO, ADBE, COST, WMT
Sentiment: Positive - Strong AWS growth acceleration expected from AI infrastructure investments, robust e-commerce performance with Prime Day success, significant operating leverage from robotics and AI deployment in fulfillment centers, and attractive forward P/E valuation below 25x compared to peers at 37x. Positive narrative shift on AI ambitions with $10B Anthropic cloud computing deal, custom Iris chip development for cost savings, improved AI recommendation algorithms driving user engagement and ad performance, new monetization opportunities in WhatsApp and Threads, and low forward P/E of 17x with significant growth runway.
Keywords: Amazon earnings, Meta earnings, AI infrastructure, cloud computing, AWS growth, custom chips, stock valuation, e-commerce
Insights:
- AMZN: Positive: Strong AWS growth acceleration expected from AI infrastructure investments, robust e-commerce performance with Prime Day success, significant operating leverage from robotics and AI deployment in fulfillment centers, and attractive forward P/E valuation below 25x compared to peers at 37x.
- META: Positive: Positive narrative shift on AI ambitions with $10B Anthropic cloud computing deal, custom Iris chip development for cost savings, improved AI recommendation algorithms driving user engagement and ad performance, new monetization opportunities in WhatsApp and Threads, and low forward P/E of 17x with significant growth runway.
- AVGO: Neutral: Mentioned as partner with Meta in developing custom Iris chip; positive association with Meta's AI infrastructure plans but limited direct analysis provided in the article.