Tech Giants Apple and Amazon Shine Amid AI Spending Worries
Two of the world's largest tech companies, Apple and Amazon, reported significant revenue growth in their second quarter earnings. Apple's revenue reached $109.4 billion, beating Wall Street expectations of $108.65 billion. The company's sales of iPhones and laptops drove its quarterly earnings per share to $2.02.
Amazon also exceeded analyst predictions with a revenue of $200.6 billion, compared to the expected $196.47 billion. The AWS cloud computing service and advertising revenue both contributed to Amazon's success, but free cash flow declined.
While Apple and Amazon saw positive earnings, other tech companies have struggled in recent weeks. Tesla and Meta shares plummeted after revealing large spending on AI infrastructure, while chip stocks like Nvidia experienced a selloff due to loss of investor confidence and advancements in Chinese manufacturing.