Amazon Surges on Cloud Growth While Apple Slips on China Weakness in After-Hours Trading

Amazon.com, Inc. (AMZN) and Apple Inc. (AAPL) reported sharply divergent results in extended trading, as investors rewarded accelerating cloud growth at Amazon while penalizing signs of regional softness at Apple.

Tech Giants Diverge on Cloud and China

Amazon shares surged 8.8% in after-hours trading following a robust second-quarter report that significantly beat analyst expectations. The e-commerce and cloud giant reported net sales of $200.6 billion, with its Amazon Web Services (AWS) division being a key driver. AWS net sales grew 37% year-over-year to $42.23 billion, its fastest pace in 18 quarters. The company's headline earnings per share (EPS) of $5.75 was substantially boosted by non-operating income from its investment in AI firm Anthropic.

In contrast, Apple shares fell 4% despite the company posting third-quarter results that topped forecasts. Apple reported an EPS of $2.02 on revenue of $109.42 billion. However, investor focus turned to the company's performance in Greater China, where revenue of $18.82 billion missed the analyst consensus of $19.58 billion, raising concerns about demand in the key market.

Guidance Weighs on Gaming and Social Media

Forward-looking statements and monetization concerns drove significant moves in other tech stocks. Roblox Corp. (RBLX) shares dropped 13% after the gaming platform issued weak guidance for its third quarter. The company's Q3 bookings forecast of $1.576–$1.653 billion fell well short of Wall Street’s $1.86 billion target.

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Reddit (RDDT) shares declined 6% following its second-quarter release. While the social media company's revenue and Q3 guidance beat estimates, the report did not include any disclosures of new AI data licensing deals, a factor some analysts were watching for.

Standout Movers Across Sectors

Several other companies saw significant price swings based on their quarterly performance and outlooks:

• AXT, Inc. (AXTI): The semiconductor substrate manufacturer skyrocketed 29% after posting a blowout Q2 report. Strong demand for its indium phosphide substrates, used in AI data centers, drove revenue and earnings far past expectations.
• Floor & Decor Holdings (FND): Shares jumped 10% after the retailer reported a "beat-and-raise" quarter, increasing its full-year 2026 EPS guidance and signaling resilient demand from professional customers.
• Western Union (WU): The stock plunged 8% after the remittance provider missed Q2 estimates and sharply cut its full-year EPS guidance to $1.25–$1.35, citing macroeconomic headwinds.
• Coinbase (COIN): The cryptocurrency exchange tumbled 5% after reporting a quarterly loss of ($1.36) per share, a significant miss compared to estimates, as trading volumes declined.