Nasdaq 100: Apple, Amazon Slide After Hours as Forecasts Miss Street Expectations

Apple, Amazon Slide Post-Earnings as Guidance Disappoints Despite Top-Line Beats

Apple and Amazon fell in after-hours trading Thursday after posting mixed earnings results. While both companies topped Wall Street expectations on key metrics, soft forward guidance and cost concerns rattled investors, sending Apple down 2% and Amazon off by 4%.

Did Apple’s Services Miss Overshadow Solid Hardware Gains?

Apple delivered EPS of $1.65 on $95.4 billion in revenue, ahead of consensus. iPhone, Mac, and iPad sales all beat estimates, with iPhone revenue hitting $46.84 billion. However, the Services segment—critical for margins and growth—came in just short at $26.65 billion, narrowly missing forecasts.

Adding pressure, Apple expects to absorb $900 million in additional costs this quarter due to tariffs. CEO Tim Cook said the company is managing this by sourcing more devices from India and Vietnam. Apple also announced a $100 billion stock buyback and a 4% dividend hike, but traders zeroed in on the revenue mix and the delayed rollout of AI features, which could dampen product momentum.

Why Did Amazon Drop Despite Strong Profit Margins?

Amazon’s Q1 revenue came in at $155.67 billion, beating expectations, with notable strength in advertising (up 19% to $13.92 billion) and AWS margins (39.5%). Yet cloud revenue at $29.27 billion missed forecasts for the third straight quarter. AWS growth slowed to 17%, and Q2 operating income guidance of $13–$17.5 billion fell short of the $17.64 billion consensus.

Investors were also cautious on commentary around macro risks, tariffs, and capital spending. Despite optimism on AI monetization and custom chip development, concerns over cloud growth deceleration and retail margin pressures weighed on the stock.

Which Other Stocks Moved After the Bell?

Airbnb slipped more than 4% after guiding Q2 revenue to a midpoint of $3.02 billion, slightly below expectations, citing soft U.S. travel demand. Block tumbled over 17% on a $5.77 billion revenue miss, well under the $6.20 billion consensus. Roku fell 3% despite a narrower-than-expected loss. Meanwhile, upbeat forecasts lifted Reddit by 18%, Twilio by over 7%, and Duolingo by 9%, with all three posting solid earnings beats and raising forward guidance.

What Should Traders Focus on Next?

The pullbacks in Apple and Amazon highlight market sensitivity to guidance and margin trends. Broader tech remains divided between strong operational results and macro drag. Key catalysts ahead include Friday’s U.S. jobs report and upcoming CPI data, which could shift rate expectations and influence sentiment in growth stocks and high-multiple names. Tariff costs, AI monetization, and consumer demand remain front of mind.

More Information in our Economic Calendar.