Apple vs. Amazon Stock as Rosenblatt Sees $303 AAPL and $360 AMZN

• Rosenblatt raised its Amazon stock target to $360 from $335, maintaining a Buy rating, while its Apple rating remains neutral with a $303 target
• Amazon’s trailing operating cash flow reached $161.4 billion, but heavy infrastructure spending pushed free cash flow to a $7.6 billion outflow
• Apple reportedly plans an October 13 Siri-powered home hub launch, alongside updated HomePod mini and Apple TV devices

Rosenblatt has a Buy rating on Amazon stock and a Hold on Apple stock, a useful starting point for comparing two companies selling investors different versions of AI growth. Amazon’s latest target increase rests partly on confidence that shopping assistants won’t upend its retail business. Apple is preparing a home device built around Siri. The announcements give both companies something new to sell, but the financial comparison needs a closer look.

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Amazon Stock Gets a Higher Target, With a Spending Catch

Rosenblatt analyst Scott Devitt raised his AMZN stock target to $360 from $335 on September 30, maintaining a Buy. This represents a 7.5% increase in the target.

Devitt argues that fears about AI shopping assistants displacing Amazon’s retail advertising business are overstated, according to reports. His case assumes Amazon can adapt as consumers change how they search for and purchase products.

There is already substantial growth in its cloud business. Amazon’s second-quarter results show AWS operating income reached $16.6 billion, compared with $10.2 billion a year earlier.

The cash figures complicate the investment case. Trailing operating cash flow rose 33% to $161.4 billion, yet free cash flow turned negative, with a $7.6 billion outflow. Amazon attributed the deterioration primarily to increased property and equipment purchases. Investors buying its growth are also funding an expensive infrastructure buildout.

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Apple Stock Has a Product Catalyst Ahead

Rosenblatt’s Barton Crockett reiterated a neutral rating and a $303 Apple target on September 10, according to analyst records.

The reported Apple smart home launch is scheduled for October 13. Reports describe a roughly six-inch display that can sit on a countertop or mount on a wall. Updated HomePod mini and Apple TV devices are also reportedly planned, giving Apple Siri more places to operate inside the home. Pricing and customer demand will determine how much this adds to sales.

Apple enters that launch with an established business still growing. Its June-quarter revenue reached $109.4 billion, up 16% from a year earlier.

Rosenblatt’s ratings favor Amazon. Its cash outflow deserves weight alongside that endorsement. Apple’s hub offers a fresh sales opportunity, though a launch date gives investors little basis yet for estimating its contribution to earnings.

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