Apple and Amazon shares took a hit after markets closed on Thursday, even as other tech giants got some positive results. The reason? Investors weren’t impressed by what they heard—especially when it came to future costs and slower-than-expected growth.
Apple’s stock dropped 4% in after-hours trading. The company had posted better-than-expected quarterly results, but one sentence from CEO Tim Cook caused concern:
“Estimated tariffs will add about $900 million in costs to the quarter ending in June if rates do not change.” That figure spooked investors who were already wary of ongoing trade tensions between the U.S. and China.
It doesn’t stop there. Apple’s Services division—the one expected to carry more of the load as iPhone sales level off—also failed to meet expectations. That matters. Services is Apple’s second-biggest revenue stream, and when it underperforms, the market pays attention.
Cook also pointed to supply chain shifts aimed at reducing reliance on China. A large chunk of Apple’s upcoming production will come from India and Vietnam. The company is trying to protect itself from being caught in the crossfire of U.S.-China trade wars. But these changes take time and cost money.
Amazon wasn’t spared either. Its stock fell 2.5% after the company released weak guidance and revealed that its cloud division—Amazon Web Services—grew slower than analysts had hoped.
That’s the third quarter in a row of missing growth expectations. Worryingly, Amazon also hinted at economic headwinds ahead, including the ripple effects of tariffs and lingering fears of a global slowdown.
During the regular trading session, Amazon had gained 3.1% and Apple had edged up by just 0.4%, but the tone shifted quickly after the earnings calls. A federal judge also ruled that Apple had violated a court order related to its App Store practices, piling on more pressure.
This drop in Apple and Amazon contrasts sharply with what happened to Microsoft and Meta. Microsoft jumped 7.6% on Thursday, thanks to a strong showing from its cloud business. AI-related growth played a major role, with the company stating that AI alone added 16 percentage points to Azure’s growth—up from 13 points the quarter before.
Meta wasn’t far behind. It ended the day up 4.2% after reporting that its AI-powered ad tools were pulling in more advertising dollars, even as global economic uncertainty dragged on.
Other chip and hardware stocks rode the momentum. Nvidia and Broadcom each gained 2.5%, further fuelling the belief that investment in artificial intelligence is finally paying off.
We’ve seen tech stocks struggle earlier this year, especially the so-called “Magnificent Seven”—Apple, Amazon, Microsoft, Meta, Nvidia, Alphabet, and Tesla.
The fear was if tariffs return in full force, the global tech economy could take a massive hit. Although some relief came when Trump paused several of his steepest tariffs on April 9, nobody’s feeling entirely safe. Trade talks between China and the U.S. are still ongoing. The outcome could reshape everything.
Jake Dollarhide, CEO of Longbow Asset Management, summed it up without sugarcoating: “Apple has storm clouds on multiple fronts.” Yet he remains bullish on the sector: “I’m still upbeat on megacap tech-related names overall.”
The reality is that Wall Street is still betting big on tech—but it’s being selective. Growth is no longer enough. Investors want clarity, stability, and a clear strategy for managing risk in an unpredictable economic climate. Apple and Amazon didn’t deliver that last night. Microsoft and Meta did.
