According to reports, like Google’s parent company Alphabet and Microsoft, last Friday, Amazon, and Apple announced financial reports showing revenue growth, and the market value of the two companies increased by about USD 196 billion in one day. This shows that despite rising U.S. inflation and consumers cutting spending, the performance of several major technology giants is still stable.
Amazon shares jumped 10%, their biggest gain since February. Apple shares rose 3.3%. Amazon shares rose 27% in July, the biggest gain since October 2009, and Apple rose 19% in July, the biggest gain in nearly two years.
Amazon’s e-commerce and cloud computing businesses are growing, and analysts believe Amazon is more resistant to inflation than Walmart because Amazon’s users are relatively wealthier.
Apple’s revenue topped analysts’ estimates as Apple’s iPhone sales rose even as global smartphone shipments fell. Although Apple’s net profit fell 11%, the overall performance was better than expected.
“The iPhone business doesn’t appear to be impacted in the current macro environment,” said Piper Sandler analyst Harsh Kumar. He believes production in China is no longer constrained by the end of the quarter and some pent-up demand has been met.