Apple drops 7%, Amazon surges 12% as investors pick AI winners after earnings
Amazon shares surged on Friday while Apple dropped as investors reacted starkly differently to their June quarter earnings reports. Shares of Amazon were...
Key points
- Amazon shares surged on Friday while Apple dropped as investors reacted starkly differently to their June quarter earnings reports.
- Shares of Amazon were 12% higher in premarket trading, while Apple fell 7%.
- Both companies reported their June quarter earnings on Thursday with Amazon impressing the market while Apple disappointed.
- Apple's earnings, revenue and iPhone sales were all above market expectations, however the company issued weak guidance for the current quarter, citing "supply constraints." Apple said revenue growth in the current quarter will be between 9% and 11%, missing analysts' expectations for 12% growth, according to LSEG.
What happened
Amazon shares surged on Friday while Apple dropped as investors reacted starkly differently to their June quarter earnings reports. Shares of Amazon were 12% higher in premarket trading, while Apple fell 7%. Both companies reported their June quarter earnings on Thursday with Amazon impressing the market while Apple disappointed. Apple's earnings, revenue and iPhone sales were all above market expectations, however the company issued weak guidance for the current quarter, citing "supply constraints." Apple said revenue growth in the current quarter will be between 9% and 11%, missing analysts' expectations for 12% growth, according to LSEG. Amazon, meanwhile, said revenue at its cloud computing business jumped 37% year-on-year in the second quarter, marking the strongest expansion since 2021. Its Amazon Web Services business is closely watched by the market, as this is where the company books most of its sales related to AI.