Hi everyone,
I went through both Apple and Amazon earnings report and my conclusion is that both had strong numbers this quarter, but the stock market treated them very differently. Apple’s share price slightly increased by a couple of percent after the report, however Amazon's share price slid about 7%.
$AAPL (Apple) posted record Q3 revenue of $94 billion, up 10% from last year, and earnings of $1.57 a share, up 12%. iPhone sales jumped more than 13% to $44.6 billion, and Services hit a record $27.4 billion. Mac sales were also better than expected. The weaker spots were iPads and Wearables, which both dropped around 8%. Even with a $1.1 billion tariff hit coming next quarter, management still expects mid- to high-single-digit growth. Most analysts kept their Buy ratings, and price targets are holding near $235. Tim Cook also talked about ongoing work to make Siri smarter and hinted at a few acquisitions. In my opinion, it's about time that Apple upgrade Siri. Who uses Siri those days ??
Looking at $AMZN (Amazon.com Inc) now, Amazon’s Q2 revenue came in at $167.7 billion, up 13%, with earnings of $1.68 a share. AWS (which is their cloud solution) grew nearly 18% to $30.9 billion, advertising revenue climbed 22%, and operating income rose to $19.2 billion from $14.7 billion.
The problem was the outlook: guidance for Q3 operating income was lighter than hoped, AWS growth lagged behind Microsoft and Google, and capital spending is set to top $100 billion this year as Amazon continues to pour money into AI and logistics. Free cash flow also dropped sharply compared with last year.
Same as Microsoft and Meta from my report last week, both Amazon and Apple are investing heavily in AI. Apple is weaving it into hardware and services, while Amazon is building out AI tools in AWS and expanding its OpenAI partnership. But the market’s mood couldn’t be more different: Apple got a nod of approval for its steady growth and healthy margins, whereas Amazon’s spending plans and cautious guidance spooked investors, at least for now.
For me, Apple still looks like a solid, steady holding. Amazon’s long-term story is intact, but it may take a few quarters for the cloud side to pick up enough speed to ease my worries.
I have spoken about OpenAI, have you tried ChatGPT5 ?
Have a nice weekend.
Guillaume Serdan... Show More
Great breakdown. Amazing how two strong reports can get such different market reactions.... Show More
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Wed Nov 12 2025 19:53:03 GMT+0000 (Coordinated Universal Time)
