Amazon and Apple Report Strong Quarterly Results, Despite Recession Fears The tech giants remain optimistic, yet realistic, considering the current economic conditions.
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Despite ongoing chatter of a looming recession and massive layoffs occurring in the tech industry, Apple and Amazon both reported strong quarterly earnings.
Apple surpassed Wall Street expectations regarding revenue and profit, and its stock rose 3% in extended trading. The tech giant remains optimistic, yet cautious.
"In terms of an outlook in the aggregate, we expect revenue to accelerate in the September quarter despite seeing some pockets of softness," Apple CEO Tim Cook told CNBC's, Steve Kovach.
Despite chip manufacturers reporting slowing demand for smartphones globally, Cook told CNBC that Apple had success with converting Android users to iPhones during the second quarter.
"We had a record level of switchers and saw double-digit growth for customers new to iPhone," Cook told the outlet.
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At Amazon, revenue growth also defied market expectations — despite a 12% stock plunge in April. Net sales increased by 7% to $121.2 billion (more than the expected $119.5 billion) — also more than the $113.1 billion reported in the second quarter of 2021, according to a press release on Business Wire.
However, operating cash flow decreased 40% to $35.6 billion for the trailing 12 months. Like Apple, Amazon remains optimistic, yet realistic, considering the current economic conditions of inflation and supply chain constraints.
"Despite continued inflationary pressures in fuel, energy, and transportation costs, we're making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network," said Andy Jassy, Amazon CEO, in the release.
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