Amazon gains on AWS acceleration, Apple slumps on Services, China

Apple beats consensus but misses on China and Services segments.
Amazon grows AWS revenue by faster rate than Q1.

Clay Webster FXStreet

Two of the Magnificent 7 reported quarterly earnings after the close on Thursday. One good. One bad.

Apple (AAPL) beat the Wall Street consensus for its fiscal third quarter, but the stock slumped 4% afterhours due to its Services segment missing the consensus. Apple's Services segment saw revenue gain 12% YoY to $30.74 billion, but that figure was short of the $31.36 billion that Wall Street expected.

Overall, outgoing CEO Tim Cook reported GAAP earnings per share (EPS) of $2.02, which was 13 cents better than consensus, on top of $109.42 billion in revenue, which rose 16% YoY and beat the consensus by $460 million.

Revenue in Greater China also rose 22% YoY to $18.82 billion, but that figure was about $800 million shy of consensus.

In contrast, Amazon (AMZN) stocked jumped 8% afterhours following a Q2 report that showed $5.75 in GAAP EPS, $3.92 above the Street's consensus. Revenue of $200.6 billion beat the consensus by more than $4.1 billion and rose nearly 20% YoY.

A big part of that was Amazon Web Services (AWS), its cloud division. That segment grew revenue to $42.2 billion, up 37% YoY. That growth rate was substantially higher than the 28% rate it reported in Q1.

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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