Amazon shares surged 14% while Apple shares dropped 9% following divergent second-quarter earnings reports.
Amazon shares rose 14% on Friday after the company reported second-quarter revenue of $200.6 billion, exceeding analyst expectations. A key driver of this growth was the Amazon Web Services cloud computing business, which saw a 37% year-on-year jump. Investors reacted positively to this growth, viewing it as a clear indicator that the company's heavy investment in AI infrastructure is meeting market demand. In contrast, Apple shares fell 9% despite the company reporting revenue of $109.4 billion, which also beat market predictions. While Apple's core products like iPhones and laptops performed well, the company issued weak guidance for the current quarter due to supply constraints in memory and chips. This led to investors to view Apple as a safe haven during broader AI-driven volatility, though its services division revenue fell slightly below expectations. Tim Cook delivered his final earnings call as CEO before being replaced by John Ternus, who aims to expand the company's entertainment business.