Amazon Shares Surge as Apple Stock Drops on Weak Guidance

Shares of Amazon.com surged between 12% and 14% on Friday after the company reported a strong June quarter earnings report. The growth was primarily driven by Amazon Web Services, the company's cloud computing division, which recorded a 37% year-on-year revenue jump, marking its strongest expansion since 2021. Although the company increased its capital expenditure forecast for AI infrastructure to 220 billion dollars, investors responded positively, viewing the cloud growth as evidence that high spending aligns with market demand.

Conversely, Apple shares dropped between 7% and 9% following the release of weak guidance for the current quarter. The company forecast revenue growth between 9% and 11%, falling short of the 12% growth expected by analysts. Apple attributed the lower outlook to supply constraints, specifically a shortage of memory components and intense competition for chip manufacturing capacity. These constraints have already forced the company to implement price increases for the Mac and iPad.