On Friday, Amazon's shares rose significantly in premarket trading, reflecting a positive market reaction to its June quarter earnings, which showed a 37% year-on-year revenue increase in its cloud computing segment, Amazon Web Services. This growth is particularly noteworthy as it indicates strong demand for Amazon's AI-related products.
In contrast, Apple faced a decline in its stock price after reporting earnings that, while exceeding expectations in revenue and iPhone sales, included weak guidance for the upcoming quarter. Apple anticipates revenue growth of only 9% to 11%, falling short of the 12% growth analysts had expected, largely due to supply constraints and a shortage of memory components.
This situation has prompted Apple to raise prices on its Mac and iPad products, with further price increases for iPhones anticipated. The contrasting stock movements of these two tech giants underscore the market's current preference for companies demonstrating robust growth in AI capabilities over those facing supply chain difficulties