During the night, the last two big names in the technology sector, Amazon e Apple , have finally released theirs quarterly results. The figures showed a combination of positive performance and forecasts disappointing, reflecting the complex trend of the entire Big Tech sector. Amazon reported an increase in profits but has disappointed about future estimates, while Apple set an all-time revenue record in the Services category, despite the decline in iPhone sales. On the stock exchange, the reaction was negative: Amazon fell 7% in after-hours trading, while Apple stock reacted somewhat anemicly, rising slightly 0,5% to around $218,80.
Amazon: revenues growing by 10%
Amazon has registered a 10% increase in revenues in the second quarter of 2024, reaching $148 billion compared to $134,4 billion in the same period of 2023. Excluding the negative impact of currency exchange, growth was 11%. L'operating profit almost doubled to $14,7 billion, compared to $7,7 billion in the second quarter of 2023 while theNet income rose to $13,5 billion, with diluted earnings per share of $1,26 compared to $0,6 a year earlier.
However, the guidance of Amazon for the third quarter of 2024 it disappointed the markets. The company expects revenue between $154 billion and $158,5 billion, with annual growth between 8% and 11%, below analysts' expectations. Expected operating profit is between $11,5 billion and $15 billion, below consensus estimates.
The performances of the divisions
Il cloud computing remains the driving force behind the profitability of Jeff Bezos' company. The division Amazon Web Services (AWS) reported an operating profit of $9,3 billion, contributing 63% of the company's total operating profits. Aws has generated revenue for 26,3 billion dollars, up 19% compared to the previous year. The division is growing but competition increases in the sector with Google, Microsoft and Oracle, all committed to increasing their investments in cloud and artificial intelligence. “And Amazon has every intention of continuing to focus on the business,” CEO Andy Jassy confirmed yesterday during the press conference to comment on the accounts. “The reality right now is that, while we continue to invest a significant amount in AI and infrastructure, we still aim to have more capacity available than we currently have,” Jassy explained: “I mean, right now we're seeing strong demand and that I think this is going to be a very, very big business for us.”
The other two main areas, North America and International, which include theE-commerce, contributed operating profitability of $5,3 billion.
Le Amazon advertising revenue, however, disappointed, coming in at $12,8 billion compared to the estimated $13 billion, although up 20% from the previous year. This revenue is among the main drivers for Amazon's accounts, along with those of rivals Meta Platforms and Alphabet-Google, which saw increases of 22% and 11% respectively in the second quarter.
The forecasts disappoint the market
Despite the positive numbers, Amazon suffered a 7% drop in after-hours trading. The market disappointment was caused by less convincing predictions for the third quarter of 2024. Amazon expects revenue between $154 billion and $158,5 billion, with operating profit expected between $11,5 billion and $15 billion. These values are lower than analysts' expectations, contributing to investor pessimism.
Apple: turnover up despite drop in iPhone sales
Also positive i Apple's financial results for the third quarter of fiscal 2024. The quarterly turnover rose to $85,78 billion, beating forecasts of $84,53 billion and marking a 5% increase from a year earlier. L'Net income was $21,45 billion, with a earning per share (EPS) of $1,40, up 11% from the same period last year and exceeding analysts' expectations.
However, they decrease iPhone sales 0,9%, still reaching 39,30 billion dollars, better than the 38,81 billion expected. Luca Maestri, Apple's chief financial officer, commented that "the iPhone 15 is doing well right from the start." Tim Cook he specified: “On a constant currency basis, iPhone sales grew compared to 2023.”
Il gross margin for the quarter was 46,3%, compared to 44,5% a year earlier, while operating expenses increased 7% to $14,3 billion. Apple set new quarterly revenue records in many regions, including Canada, Mexico, France, Germany, the United Kingdom, India, Indonesia, the Philippines and Thailand.
The Services category recorded a absolute turnover record, and the iPad category has also seen a notable increase thanks to the new iPad Pro and iPad Air models.
Apple's board of directors declared a cash dividend of $0,25 per share, payable on August 15, 2024 to shareholders of record at the close of business on August 12, 2024.
Sales by devices
Le Mac sales disappointed slightly, coming in at $7,01 billion, slightly lower than the expected $7,02 billion, but up 2,46% from $6,84 billion a year earlier. iPad sales reached $7,16 billion, beating forecasts of $6,61 billion and marking an increase of 23,63% over the previous year.
La division of accessories and devices wearables generated revenue of $8,10 billion, beating expectations of $7,79 billion, despite a 2,26% decline from $8,28 billion in the same quarter of 2023. Services division revenue was 24,21 .24,01 billion dollars, exceeding the estimated 14,14 billion and marking an increase of XNUMX% year over year.
Tim Cook, CEO of the Apple company, expressed satisfaction with the results: “Today Apple reports a new turnover record for the June quarter, amounting to $85,8 billion, an increase of 5% over last year. During the quarter, we were thrilled to announce incredible updates to our software platforms at the Worldwide Developers Conference, including Apple Intelligence, a revolutionary personal intelligence system that puts powerful generative and private AI models at the heart of iPhone, iPad and Mac. We look forward to sharing these tools with our users and continue to invest significantly in innovations that will enrich people's lives. our customers, guided by the values that inspire our work".
Apple's future challenges
For the future, Apple aims to stimulate demand for its products introducing new features related to artificial intelligence. Furthermore, the company stands facing strong competition in China, where it lost market share, reducing iPhone prices to compete with local manufacturers.
