Story
Amazon Surges on AI-Powered Cloud Growth as Apple Tumbles on Weak Outlook
Shares of Amazon surged in premarket trading Friday after the company reported robust cloud computing growth driven by artificial intelligence investments, offering a stark contrast to Apple, whose stock fell sharply after issuing a weaker-than-expected revenue outlook.
Amazon's AI Bet Pays Off
Amazon (AMZN) stock jumped more than 12% ahead of the market open after the e-commerce and cloud giant announced its strongest cloud revenue growth in over four years. The results suggested the company's massive investments in AI are translating into significant demand.
A key highlight from the report was the disclosure that businesses powered by Amazon Web Services' custom AI chips have reached a $25 billion annual revenue run rate. The strong performance appeared to overshadow the company's plans to increase capital expenditure, signaling investor confidence in its long-term AI strategy.
The positive news lifted sentiment across the AI infrastructure sector. Shares of semiconductor firms Marvell Technology (MRVL) and Astera Labs (ALAB) rose 7% and 8% respectively, as investors saw Amazon's growth as a positive signal for the entire AI supply chain.
Apple Outlook Disappoints Investors
AdIn contrast, Apple (AAPL) shares declined 7.3% in premarket activity. The drop came after the iPhone maker provided a fourth-quarter revenue forecast that fell short of Wall Street expectations, sparking concerns about near-term growth.
The company warned that shortages in advanced chip manufacturing capacity would constrain shipments of its iPhone, Mac, and iPad products during the September quarter. This cautious guidance overshadowed the fact that Apple had just posted record quarterly revenue.
Other Notable Market Movers
The divergent performance of the two tech behemoths highlighted a selective market, where investors heavily scrutinized corporate outlooks. Other companies making significant moves on their earnings and guidance included:
- Roblox (RBLX): Tumbled 16.5% after the online gaming platform reported weaker-than-expected bookings growth and disappointing forward guidance.
- GoDaddy (GDDY): Fell 10.9% after the web services provider issued a full-year revenue forecast below analyst consensus.
- Western Union (WU): Slid 7.7% after the money transfer company missed quarterly estimates and lowered its full-year financial outlook.
Read next
More on Stocks
FTC Orders Walmart, Uber, Delta to Disclose Data on Personalized Pricing
The U.S. Federal Trade Commission is demanding nine major companies, including leading retail, travel, and gig economy firms, to provide information on how they use consumer data for setting individual prices and wages.
Google Launches Gemini 4 Carbon AI Model to Bolster Cybersecurity Capabilities
Alphabet's Google has unveiled Gemini 4 Carbon, its latest AI model specifically designed for advanced cybersecurity tasks like vulnerability detection and secure code generation. The launch escalates competition with rivals OpenAI and Anthropic in the enterprise AI market.
Oracle Shares Surge After Unveiling $225 Billion Revenue Target for 2030
Oracle stock rose sharply after the company presented a long-term financial outlook targeting at least $225 billion in annual revenue by fiscal 2030, driven by its expanding AI infrastructure business.
DOJ Scrutinizes Nvidia's $12.9B Hugging Face Deal Amid Broader Antitrust Probe, Sources Say
The U.S. Department of Justice is reportedly examining Nvidia's planned $12.93 billion acquisition of AI platform Hugging Face as part of a wider, ongoing antitrust investigation into the chipmaker's market conduct.