Amazon and Apple shares moved sharply in opposite directions following their June quarter earnings reports released on Thursday. Amazon rose 12% in premarket trading on Friday, while Apple declined 7%, reflecting markedly different market reactions to the two technology giants’ financial performance.
Apple’s earnings and revenue exceeded analyst expectations, and iPhone sales also beat forecasts. However, the company issued cautious guidance for the current quarter, projecting revenue growth between 9% and 11%, falling short of the 12% growth analysts had anticipated according to LSEG data. Apple attributed the weaker outlook to supply constraints, specifically citing a significant shortage of memory chips and intense competition for chip manufacturing capacity. The company has responded by increasing prices on Mac and iPad products, with analysts expecting similar iPhone price increases later this year.
In contrast, Amazon impressed investors with its cloud computing division results. The company’s Amazon Web Services segment reported revenue growth of 37% year-over-year in the second quarter, representing the strongest expansion since 2021. The cloud business is closely monitored by market participants as a key indicator of demand for AI-related products and services. Despite announcing a substantial increase in capital expenditures to $220 billion this year from a previous forecast of $200 billion, Amazon’s stock surged as investors viewed the AWS growth as validation that infrastructure investments align with actual market demand.
The diverging reactions illustrate a broader pattern emerging during the earnings season. Meta shares fell 8% on Thursday while Microsoft rose 15%, as investors reassessed their views on different companies’ approaches to artificial intelligence strategy and spending. Year-to-date, Apple has gained 23% while Amazon has risen approximately 4%, highlighting how market preferences have shifted during this earnings period.
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