Amazon surges 14%, Apple falls 9% as investors pick post-earnings AI winners
Amazon rose after AWS revenue jumped 37% and Apple fell after guidance missed expectations, highlighting a split among mega-cap tech stocks.
- On Friday, Amazon stock surged 12% after reporting stronger-than-expected earnings, while Apple shares fell approximately 8% despite beating profit expectations as investors focused on weak guidance and supply constraints.
- Amazon reported $200.6 billion in revenue with AWS growth accelerating 37%, its fastest pace in 18 quarters, prompting management to raise 2026 capital expenditure guidance to $220 billion amid intense AI-powered cloud demand.
- Citing 'supply constraints' for advanced chips and memory, Apple guided fiscal fourth-quarter revenue growth of 9% to 11%, missing the 12% analyst consensus despite reporting record June-quarter earnings of $109.4 billion.
- Microsoft's Azure cloud platform posted 43% growth, reinforcing investor confidence that businesses continue expanding AI-powered spending, a benchmark that contrasts sharply with the hardware-specific supply issues constraining Apple's near-term outlook.
- Analysts view Amazon's increased capex as a positive signal that infrastructure investments are yielding returns, while Apple's struggle highlights how the market has become selective, prioritizing direct AI-powered beneficiaries over traditional hardware makers.
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Amazon (NASDAQ: AMZN) Earnings Surge Reignites AI Trade, Lifting Nasdaq Futures As Apple (NASDAQ: AAPL) Slides 7%
U.S. stock futures climbed in early Friday trade as blowout results from Amazon (NASDAQ: AMZN) reignited investor appetite for artificial intelligence-driven equities. Nasdaq futures rose 1.2% as of 4:00 a.m. ET, while S&P 500, Dow, and Russell 2000 futures each gained approximately 0.5%. Amazon shares soared more than 11% in premarket trading after investors cheered AWS posting its strongest growth in 18 quarters, robust advertising revenue, an…
Apple lost hundreds of billions of dollars in market value on Friday. Investors punished the iPhone maker for a disappointing forecast, although the company did record higher revenue and profit in CEO Tim Cook's final full quarter. Amazon, on the other hand, rose by more than 15 percent and experienced its best day on Wall Street in years.
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