Amazon’s profit forecast rattles investors
Amazon shares fell 3% in after-hours trade after the company issued a weaker-than-expected profit forecast for the current quarter. The tech giant projected operating income of between US$15.5bn and US$20.5bn for the September quarter, missing the average analyst estimate of US$19.4bn.
While sales guidance of US$174bn to US$179.5bn came in ahead of consensus, concerns mounted over rising costs tied to artificial intelligence investments. CEO Andy Jassy is ramping up spending on data centres to compete with Microsoft and Alphabet in the generative AI arms race.
Amazon Web Services, its cloud division and key profit driver, reported revenue of US$30.9bn—up 17% and slightly ahead of estimates.
The stock closed at US$234.11 in New York and is now up 6.7% year-to-date.
Apple beats expectations despite tariff headwinds
In contrast, Apple delivered a strong set of results, posting third-quarter revenue of US$94.04bn—up nearly 10% and well above forecasts of US$89.54bn. Earnings per share came in at US$1.57, beating the expected US$1.43.
iPhone sales led the charge, rising 13.5% to US$44.58bn, comfortably topping analyst expectations. The company’s strategic pivot to diversify its supply chain—shifting iPhone production to India and moving assembly of Macs and Apple Watches to Vietnam—appears to be paying off.
Apple had warned that tariffs stemming from President Trump’s trade policy could cost up to US$900 million this quarter. Though many of its products remain exempt for now, the potential for future duties looms. As a precaution, the company trimmed its annual share buyback program by US$10bn—a move analysts say gives it more cash flexibility amid geopolitical uncertainty.
Sales in the Americas, which includes the US and is most exposed to tariff risk, rose 9.3% to US$41.2bn.
Apple shares rose 5.2% in after-hours trading, extending a year-to-date gain of more than 20%.
