Apple and Amazon to Unveil Quarterly Results: Focus on AI, Cloud Services, and Impact of Global Semiconductor War

The first series of results from the Big Tech giants last week brought Google’s accelerated growth (GOOG, GOOGL), Meta’s focus on artificial intelligence (META), and concerns about Microsoft’s capex (MSFT) into the spotlight. Following suit are Apple (AAPL) and Amazon (AMZN), whose quarterly figures are set to be released after the stock market closes today. Economists and investors alike eagerly anticipate the reports from these companies that employ millions globally, generate revenues in the billions from both consumers and businesses, and have market capitalization that consistently soars into the trillions.

Apple’s Unfolding Landscape

Having already recorded a 54% increase in its stock this year, Apple’s perspective on several of its business sectors will shed light on a wider economic scenario. Services results, which encompass the cloud, App Store, Apple Music, and Apple Pay, will be carefully scrutinized alongside the volumes of iPhone shipments and the rising costs of Pro models. Investors are also urged to tune into the conference call for any mention of “artificial intelligence, the new VR headset, status in foreign markets such as India, and potential impacts of the escalating semiconductor feud between the U.S. and China.”

Amazon’s Rise in Commerce

Similarly, Amazon has experienced a significant resurgence year-to-date, with share prices surging nearly 50% throughout 2023. Having recently completed its most successful Prime Day in July, the company’s ventures into the pharmacy and grocery sectors will likely be a topic of discussion. The focal metrics will probably be the forecast for Amazon Web Services, the company’s cloud computing platform, and whether the progress in streaming and advertising can counterbalance a slowdown in consumer and enterprise expenditure.

Analysts’ Views and Previews

According to SA analyst Wealth Insights, “AMZN shares are attractively valued for continued accumulation, though one can never know what the market will do as earnings approach.” Concurrently, Business Quant perceives Amazon as prepared for a Q2 victory, and Jamie Galvin highlights growth and margins as part of the 3 Key Items To Watch in the results. Regarding Apple (AAPL), Tradevestor offers a preview of the iPhone giant’s performance, exploring its valuation, technical strength, and recent revisions.