Both Apple and Amazon reported strong quarterly earnings despite talk of an impending recession and mass layoffs in the tech industry.
Apple beat Wall Street expectations on revenue and profit, and its shares rose 3% in after-hours trading. The tech giant remains optimistic but also cautious.
“In terms of the overall outlook, we expect revenue to accelerate in the September quarter despite some weakness,” said Apple CEO Tim Cook. NBC FinanceSteve Kovacs.
While chipmakers reported slowing global demand for smartphones, Cook told CNBC that Apple successfully converted Android users to iPhones in the second quarter.
“We have a record number of switchers and double-digit growth in new iPhone users,” Cook told the media.
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At Amazon, revenue growth also beat market expectations — despite a 12% plunge in the stock price in April. Net sales rose 7% to $121.2 billion (beating estimates of $119.5 billion) and also surpassing the $113.1 billion reported in the second quarter of 2021. Press Releases from Business Wire.
However, operating cash flow for the trailing 12 months fell 40% to $35.6 billion. Like Apple, Amazon remains optimistic but realistic given the current economic conditions of inflation and supply chain constraints.
“Despite persistent inflationary pressures on fuel, energy and transportation costs, we made progress on the more manageable costs mentioned in the last quarter, especially improving the productivity of our fulfillment network,” Amazon CEO Anton said. Dee Jassy said in a press release.
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