Amazon and Apple reported quarterly results that beat Wall Street expectations, but investors reacted differently as attention shifted to outlooks, artificial intelligence spending and future growth. While Amazon shares rose in premarket trading Friday after strong cloud results, Apple came under pressure after issuing weaker-than-expected guidance despite beating estimates on revenue, earnings and iPhone sales.
Amazon Sees Strong Cloud Growth
Revenue at Amazon Web Services, the company’s cloud computing division, increased 37% year over year, marking its fastest growth since 2021. Growth in AWS reassured investors that demand for cloud infrastructure remains strong as AI adoption accelerates.
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To support that expansion, Amazon raised its 2026 capital expenditure forecast to $220 billion from $200 billion, reflecting continued investment in AI infrastructure.
“AWS’s strong growth is a clear indicator that its infrastructure investments are meeting market demand rather than outpacing it,” Tracy Woo, principal analyst at Forrester, said in a note.
Apple Outlook Weighs On Shares
Apple exceeded Wall Street expectations for revenue, earnings and iPhone sales, but forecast revenue growth of 9% to 11% for the current quarter, below analysts’ expectations of 12%, according to LSEG.
Supply constraints remain a challenge, particularly for memory components used across the company’s product portfolio. Those pressures have already contributed to higher prices for Macs and iPads, while analysts expect iPhone prices to increase later this year.
Investors Focus On AI Execution
The contrasting market reaction highlights how closely investors are watching AI-related investment and growth across the technology sector. Before Friday’s move, Amazon shares had gained about 4% this year, compared with roughly 23% for Apple.
Elsewhere in the sector, Meta shares fell 8% on Thursday, while Microsoft gained 15%, reflecting differing investor views on AI investment strategies and expected returns.
