---
title: "Apple & Amazon Earnings: What is the Market Action Telling Us?"
description: Managing a trillion-dollar company is like steering a giant ocean liner; the current economic and political environment amounts to rough seas.
---

[Tradier Blog ](https://blog.tradier.com/blog)

# [Apple & Amazon Earnings: What is the Market Action Telling Us?](https://blog.tradier.com/blog/apple-and-amazon-earnings)

 Written by [Tradier Inc.](https://blog.tradier.com/blog/author/tradier-inc-) | Aug 7, 2023 5:26:57 PM

*Source: *[*companiesmarketcap.com*](https://companiesmarketcap.com/?utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz--mDmIpQF6XRzGet4-iV7it7NGinF3xHVxJXVFRfUAYdMcVpZW7w7Zanspdy4DsjqIly6Lq)  

There are six publicly traded companies in the trillion-dollar market cap club. Managing a trillion-dollar company is like steering a giant ocean liner; the current economic and political environment amounts to rough seas. Last week, Apple (AAPL), the leader, and Amazon (AMZN), with the fifth top valuation, reported second-quarter earnings. AAPL and AMZN trade on the tech-heavy NASAQ, and the shares went in opposite directions after the latest earnings reports.

The trillion-dollar club attracts lots of investment and speculative interest, and the path of least resistance of these stocks can determine the overall stock market trend over the coming weeks.

 

**Apple revenues fall for the third straight quarter**

- Apple’s fiscal Q3 revenues came in at $81.80 billion, above the consensus $81.55 billion forecasts; they were lower than the $82.95 billion in fiscal Q3 2022.
- Adjusted EPS at $1.26 per share beat forecasts for $1.20 and were above the $1.20 in fiscal Q3 2022.
- iPhone revenue was disappointing at $39.67 billion. It was lower than the $39.79 forecast and the $40.67 billion in fiscal Q3 2022.
- Apple shares closed at $191.17 on August 3 before earnings and closed lower at $181.99 per share on Friday, August 4, after the market digested the latest earnings report.

** **

**Amazon did far better for the quarter**

- Amazon reported net sales of $134.38 billion versus expectations of $131.63 billion, above the company’s guidance range of $127 to $133 billion.
- Diluted EPS came in at $0.65 per share versus forecasts for $0.35.
- AMZN’s web services net sales, operating margin, and operating income exceeded the market’s consensus expectations.
- Amazon shares closed at $128.91 on August 3 before earnings and closed at $139.57 on Friday, August 4, after digesting the latest quarterly earnings report.

** **

**Mixed Signals for the NASDAQ**

- AAPL fell 4.8% after earnings from August 3 to August 4.
- AMZN shares moved 8.3% higher after earnings from August 3 to August 4.
- AAPL’s market cap is over twice AMZN’s and is a more widely held stock in portfolios and ETF holdings.
- The NASDAQ edged 3.6% lower from 13,959.72 on August 3 to 13,909.24 on August 4.

 

**The divergence reflects the overall market sentiment**

- The leading stock market indices have posted impressive gains in 2023, with the NASDAQ leading the way on the upside.
- Stock market investors are highly sensitive to earnings.
- While better-than-expected results should continue to favor higher share prices, disappointing results could cause significant corrections in the current environment.
- The 2023 stock market rally has lots of positive expectations in its sails.

** **

**Macroeconomic forces remain questionable**

- The Fed increased the Fed Funds Rate by 25 basis points in July continuing a hawkish path.
- The stock market has ignored the Fed. While fighting the central bank’s monetary policy has never been optimal, it has been the correct course in 2023.
- Any economic slowdown could cause stocks to correct if optimism turns negative quickly.
- The reactions to the latest APPL and AMZN earnings reports tell us the market will chase better-than-expected earnings and punish companies that do worse than forecasts.

 

Thanks for reading, and stay tuned for the next edition of the Tradier Rundown!

 

[View full post](https://blog.tradier.com/blog/apple-and-amazon-earnings)

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