Wall Street delivered a split verdict on two tech giants Friday morning, sending Amazon shares surging while Apple stock tumbled as traders digested sharply different takeaways from their latest quarterly results.
Amazon climbed 12% in premarket trading, while Apple dropped 7% following their respective June quarter earnings releases on Thursday.
Apple’s Supply Chain Headwinds
Despite beating Wall Street estimates across key metrics — earnings, revenue, and iPhone sales all came in above expectations — Apple’s outlook spooked investors. The company projected revenue growth of between 9% and 11% for the current quarter, falling short of the 12% expansion analysts had anticipated, according to LSEG data.
Apple cited “supply constraints” as the primary culprit behind the cautious forecast. The iPhone maker is contending with a severe memory shortage, a critical component across its product lineup, alongside fierce competition for chip manufacturing capacity.
The supply pressures have already prompted Apple to raise prices on its Mac and iPad lines. Market watchers now expect the company to extend those increases to the iPhone later this year, a move that could test consumer demand in an uncertain economic environment.
Amazon’s Cloud Business Shines
Amazon’s performance painted a starkly different picture. The e-commerce and cloud computing behemoth reported that revenue at Amazon Web Services jumped 37% year-over-year in the second quarter, representing the division’s strongest growth rate since 2021.
The AWS results carry particular weight with investors, who closely monitor the unit as a barometer for Amazon’s artificial intelligence ambitions. Most of the company’s AI-related revenue flows through the cloud computing segment, making its performance a key indicator of market demand for Amazon’s AI products and services.
The robust AWS growth suggests enterprise customers continue ramping up cloud spending, particularly on AI infrastructure and services, even as economic uncertainty persists in other sectors.
Diverging Fortunes in Tech
The contrasting stock movements underscore how differently investors are weighing near-term execution challenges against longer-term growth potential. While Apple’s fundamental business remains strong by most measures, the company’s ability to meet demand and maintain pricing power has come into question.
Amazon, meanwhile, appears to be capitalizing on the AI investment cycle, positioning its cloud infrastructure business to benefit from surging demand for computing power and AI tools across the corporate landscape.
The Friday premarket action reflects Wall Street’s growing sensitivity to forward-looking indicators and management guidance, particularly as traders seek clarity on which technology companies are best positioned to navigate supply chain disruptions and capture emerging AI opportunities.
Source: www.cnbc.com — https://www.cnbc.com/2026/07/31/apple-aapl-amazon-amzn-stock-today.html
This article is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Do your own research and consult a licensed professional before making financial decisions.
