Amazon dethrones Apple as stock titan

LAST year, failing to own Apple was the most painful mistake a US equity fund manager could have made. This year, that distinction goes to Amazon.com.

Up 67 percent in 2015, the online retailer has contributed the most to mitigating losses in the Standard & Poor’s 500 index this year. Amazon’s ascent has been aided not just by Apple’s misfortunes, but by its perceived haven status at a time when investors want nothing to do with emerging markets.

The company, which gets 57 percent of its revenue from North America, is less exposed to global growth than its peers.

“Nervous investors are looking to shift money from Apple, and for lack of new ideas, they’re crowding into Amazon,” said Hugh Grieves, a London-based fund manager at Miton Group, who runs the firm’s US Opportunities Fund.

After posting a surprise quarterly profit in July, Amazon surged 24 percent in that month while the S&P 500 rose 2 percent.

By contrast, Apple has tumbled amid heightened concern over iPhone demand in China, down 15 percent from a July 20 high.

The company’s profit is projected to increase 42 percent this year and 7 percent in 2016. Analysts see Amazon’s earnings tripling this year. Sales in 2016 are forecast to climb 19 percent – almost four times Apple’s pace.