Apple’s revenue guidance missed estimates due to supply constraints, while Amazon’s AWS growth accelerated to its fastest pace since 2021.
Amazon shares rose 12% in premarket trading after its cloud computing unit, AWS, reported a 37% year-on-year revenue increase in the June quarter. The growth marks the strongest expansion since 2021 and reflects surging demand for AI-related services, a key driver for the company’s profitability.
Apple declined 7% despite beating earnings and revenue expectations for the quarter. The company warned of supply constraints, forecasting revenue growth of 9%-11% for the current quarter, below analysts’ 12% estimate. Memory shortages and chip manufacturing competition have pressured production, prompting price increases for Mac and iPad devices.
Investors reacted sharply to the contrasting outlooks, rewarding Amazon’s AI-driven growth while penalizing Apple’s cautious guidance. The divergence highlights sector-specific challenges and opportunities in the tech industry.