Amazon and Apple Diverge as AI Trade Reshapes Market

In premarket trading on Friday, Amazon's stock climbed 13% following the release of its second-quarter results, which exceeded forecasts. The company's cloud-computing division was a key driver, reinforcing investor confidence in AI-related spending. Conversely, Apple's shares fell over 7% despite its fiscal third-quarter results surpassing expectations, with iPhone unit revenue surging 22%. The decline was attributed to weakness in the services segment, which undercut the otherwise strong headline numbers. This divergence highlights the market's growing preference for companies with clear AI exposure, as investors increasingly reward firms that demonstrate tangible benefits from AI investments while penalizing those with perceived weaknesses in other areas.