4 months ago • 2 mins
What’s going on here?
What does this mean?
Amazon has been stuck with single-digit growth for five out of the last six quarters, but last quarter it shifted gears and sped back into the double-digit fast lane. A lot of the credit goes to its cloud segment, whose revenue revved up an impressive 12% as customers loosened their purse strings. But the e-commerce business wasn’t left in the dust either, with solid 10.5% growth. All in all, revenue ticked up 11%, and Amazon topped it off with a better-than-expected outlook too.
While Apple didn’t have that same universal growth, with sales of iPhone, Mac, and iPad lines all falling last quarter, the firm’s ultra-profitable services business made up for it. With now over a billion paying subscribers worldwide, offerings like Apple TV, Music, and iCloud helped the division hit record revenue. Despite the mixed bag, then, Apple still outstripped revenue and profit expectations.
Why should I care?
Zooming in: Greased lightning.
Amazon’s lightning-fast delivery has helped it corner over a third of all US online spending, leaving competitors in the dust. And Amazon’s keen to keep that lead, with plans to double the number of same-day US delivery facilities in the coming years. While that move could boost sales and efficiency, it’s a gamble too: the upfront costs are high, and it's not clear how long it’ll take to recoup the investment.
The bigger picture: Old-school appeal.
The S&P 500 has been on a roll this year, and tech titans Apple and Amazon have helped lead the charge. But here's the twist: while AI has been a key player in the wider market rally, it's not the star of the show for these two. Their robust revenue streams and market dominance are the real attractions, and despite a few bumps, these latest results underscore their enduring appeal.
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