Depending on how much you are looking to spend you could do both. Get a gift card for a local place to eat for the parents after the baby is born. Then get something for the baby. If they have a registery that would be best to follow. If not all I can do is tell you do not get them newborn size diapers. They grow out of them far too fast and everyone seems to give them. You could get things like baby rattles, blankies, bottles if mom plans to bottle feed, or a gift kit that comes with a little of everything. If mom is going to breastfeed try making her a breastfeeding basket with things like nipple cream, reusable breast pads, bottled drinks for mom, snacks she can eat while breastfeeding, and maybe a couple cute onsies that say cute things about being breastfed on them.