Apple and Amazon Post Strong Q2 Revenues Amid Divergent AI-Spending Sentiments

Apple reported second-quarter revenue of $109.4 billion, topping Wall Street’s $108.65 billion estimate, and earnings of $2.02 per share. Amazon posted revenue of $200.6 billion, exceeding analysts’ $196.47 billion forecast. Apple’s stock slipped modestly after the release, while Amazon’s shares jumped more than 8 % in after-hours trading.

The Guardian

Both companies disclosed that investors are scrutinizing free-cash-flow metrics after large AI-related capital expenditures. The Guardian notes that a recent sell-off in chip makers such as Nvidia has heightened investor wariness of “exorbitant AI spending.” Apple’s earnings call highlighted “supply constraints” on memory chips, prompting price hikes on Macs and iPads. Amazon, by contrast, emphasized growth in its AWS cloud unit—viewed as the primary conduit for its AI services.

CNBC

• Apple: Revenue $109.4 bn; EPS $2.02; guidance for the current quarter predicts 9 %–11 % revenue growth, below analysts’ 12 % expectation.

The Guardian

• Amazon: Revenue $200.6 bn; AWS revenue grew 37 % year-on-year, the strongest expansion since 2021. Capital-expenditure outlook raised to $220 bn for the year, up from a prior $200 bn target.

The Guardian

• Stock performance: Amazon shares rose 14 % on Friday; Apple shares fell 9 % following the report.

The Guardian

Tim Cook, in his final earnings call, expressed excitement about his successor, saying John Ternus is “truly one of a kind” and well-suited to lead Apple forward. Ternus later indicated plans to expand Apple’s entertainment business, citing recent successes with movies such as *F1* and series like *The Studio*.

The Guardian

The divergent stock reactions reflect differing market views on AI spending. Apple’s modest capex and strong brand positioning have led investors to view it as a “safe haven” amid AI-related volatility, supporting a 23 % year-to-date gain. Amazon’s aggressive AI infrastructure investment appears justified by robust AWS growth, bolstering confidence despite a higher capex target. The earnings season thus underscores a split in investor sentiment: cautious optimism for firms that can demonstrate immediate AI demand versus skepticism toward those whose spending outpaces proven market traction.

CNBC