Amazon Rises 12%, Apple Falls 7% After Earnings

The context

Apple's supply problems stem from the generative AI boom, which has driven steep demand for hardware components and pushed up memory prices. Cook, who is outgoing as CEO, described the situation as "a hundred-year flood" on memory pricing, according to TechCrunch. The company's biggest challenge is securing the advanced memory nodes used in its A-Series and M-Series processors, which power iPhones and Macs. The constraints led Apple to raise prices on Macs and iPads last month, a step Cook said the company took reluctantly. Meta, Samsung, Microsoft and Sony have also raised hardware prices. Apple's decision to build up inventory marks a break from Cook's long-standing supply chain approach, which emphasized keeping stock on hand to a minimum. Amazon's tariff refund followed the Supreme Court ruling against many of the Trump administration's levies; the company had not previously disclosed whether it would recover those costs.

Why it matters

The split between Amazon and Apple shows how investors are now grading Big Tech: companies that deliver measurable AI results are rewarded, while those leaving doubts are punished. That framework affects millions of U.S. investors and retirement accounts holding these stocks. For Apple, the numbers point to slower growth ahead. The company is forecasting revenue growth of 9% to 11% year over year for the coming quarter, down from the roughly 16% pace it has maintained in recent quarters, according to TechCrunch. For Amazon customers, the tariff refunds mean some will receive money back directly.

What’s next

Apple expects the impact of supply constraints to increase significantly in the coming quarter, Cook said, with the company forecasting 9% to 11% revenue growth. John Ternus, Apple's senior vice president of hardware engineering, is set to take over as CEO in September, according to TechCrunch. Which Amazon customers receive tariff refunds, and how, remains to be detailed. The Friday session will show whether the premarket moves hold through the close of July trading.