Amazon shares surge 12% while Apple falls 7% following earnings reports
Divergent results for the tech giants drove mixed movement across major US indices.
Talivio News · Global1 min read
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Talivio News (AI illüstrasyon)
Amazon and Apple reported their June quarter earnings on Thursday, leading to divergent performance in premarket trading on Friday. Amazon shares rose 12%, while Apple shares fell 7%.
Amazon's stock surge followed its earnings report, driven largely by its cloud computing business. Amazon Web Services (AWS), the unit where the company books most of its sales related to AI, saw revenue jump 37% year-on-year in the second quarter. This growth marks the unit's strongest expansion since 2021.
37% year-on-year
Revenue growth for Amazon's cloud computing business in the second quarter.
Apple's earnings, revenue, and iPhone sales were above market expectations. However, the company issued weak guidance for the current quarter, citing 'supply constraints.'
Supply constraints
— Apple
Apple projected revenue growth for the current quarter to be between 9% and 11%. This guidance missed LSEG analysts' expectations of 12% growth. The company is experiencing a shortage of memory and competition for chip manufacturing capacity.
Apple has raised prices on the Mac and iPad, and analysts expect an iPhone price rise to occur this year.
The stock movements impacted broader markets. Amazon's surge in stock price offset Apple's decline, causing the Nasdaq to open higher. The Dow rose, while Apple's stock declined due to its weak forecast.
Market Reaction
Updates
Amazon reported second-quarter revenue of $200.6 billion alongside AWS revenue growth of 37%, marking its fastest growth in 18 quarters, while management reaffirmed a full-year capital expenditure outlook of near $220 billion. Apple's stock decline deepened to 9.4% from the previously reported 7%. Additionally, Amazon's surge added approximately 208 points to the Dow Jones, while Apple's fall subtracted about 188 points.
Amazon's second-quarter revenue reached $200.6 billion, bolstered by a 37% growth in AWS revenue, which marks the unit's fastest expansion in 18 quarters. While the company reaffirmed its full-year capital expenditure outlook of approximately $220 billion, Apple's stock decline deepened from the previously reported 7% to 9.4%. These movements contributed to significant fluctuations in the Dow Jones Industrial Average, with Amazon adding roughly 208 points and Apple subtracting about 188 points.
Apple's stock decline has deepened to 9.4%, shifting from the previously reported 7% drop. Amazon has reported second-quarter revenue of $200.6 billion, with AWS revenue growth reaching a 18-quarter high of 37%. Furthermore, Amazon's performance contributed 208 points to the Dow Jones Industrial Average, while Apple's downturn subtracted 188 points.
Amazon's shares have jumped as much as 14.9%, while Apple's stock decline has deepened to 9.4%. Amazon reported $200.6 billion in second-quarter revenue, supported by AWS revenue growth of 37%, the fastest for the unit in 18 quarters. Meanwhile, Apple's revenue growth guidance of 9% to 11% for the current quarter missed analyst expectations of 12% as management cited component supply constraints.
Amazon's shares have jumped 14.9%, while Apple's stock decline deepened to 9.4% from its previous 7% drop. Amazon reported second-quarter revenue of $200.6 billion, accompanied by AWS revenue growth of 37%, which marks its fastest expansion in 18 quarters. Additionally, Apple's management attributed its muted guidance to component supply constraints caused by the AI hardware boom, noting that its 9% to 11% revenue growth guidance missed analyst expectations of 12%.
