Amazon Boosts Markets as Apple Struggles with Earnings Guidance

On July 31, 2026, U.S. equity markets saw a positive shift driven by Amazon's strong performance, which led to a surge in artificial intelligence-related stocks. The S&P 500 index rose by 0.7%, while the tech-heavy Nasdaq 100 increased by 0.6%. However, Apple Inc. faced a significant decline of 7.4%, its largest single-day drop since April 2025.

The company's disappointing earnings guidance was cited as a reason for the decline. Despite a positive market sentiment, particularly driven by tech stocks, Apple's performance diverged significantly. The company's earnings season results have been mixed, with 86% of the 291 S&P 500 companies reporting thus far exceeding market expectations.

AAPL's GF Value is calculated at $269.78, suggesting it is currently overvalued by approximately 14.5% given its current price of $308.91. This overvaluation indicates a lack of margin of safety for potential investors, as the stock price exceeds the intrinsic value derived from historical trading multiples and future performance estimates.