Magnificent Seven Earnings Primer: Apple and Amazon
Apple and Amazon report to round out a massive week of US corporate results.
The next wave of Magnificent Seven results lands on Thursday, October 30th, with Apple and Amazon set to headline after the closing bell.
Apple: iPhone demand steadies as AI investment questions linger
Apple is expected to report fiscal fourth-quarter adjusted EPS of $1.77 on revenue of $102.2 billion, according to consensus forecasts. The results come as Apple’s share price trades at record highs, supported by signs of resilient iPhone demand—particularly in China, a market the company has lost market share, where reports suggest a strong reception for the iPhone 17. Despite this, investors remain cautious given Apple’s slower adoption of artificial intelligence compared with peers. Future growth hinges on how effectively Apple integrates AI features into its product ecosystem and whether it can offset market-share losses in key regions. Continued strength in services revenue and hardware margins could help underpin earnings stability, while guidance on AI spending and supply-chain efficiency will be critical for sustaining the recent share-price momentum.
(Source: Trading View)
(Past performance is not a reliable indicator of future results)
Amazon: AWS trajectory and ad strength remain key drivers
Amazon’s third-quarter results are projected to show continued improvement across its core business lines, with adjusted EPS of $1.97 and revenue of $177.8 billion. The focus will be on Amazon Web Services, where investors are watching for signs of re-acceleration after roughly 17.5% year-on-year growth last quarter. A move back toward the 20% growth threshold could provide an upside catalyst, particularly if margins remain firm. Advertising continues to be a standout, expanding around 22% last quarter on the back of Prime Video’s growing ad momentum—a trend expected to persist into the holiday season. Retail operations are also drawing attention, with analysts monitoring whether improving logistics efficiency continues to support margins. Meanwhile, heavy AI-related capital expenditure remains a double-edged sword: spending is tracking toward record levels in 2025, but markets will look for evidence that these investments are translating into stronger free cash flow.
(Source: Trading View)
(Past performance is not a reliable indicator of future results)