Apple falls 7%, Amazon jumps 12% as AI bets divide investors

Amazon shares surged 12% in premarket trading on July 31, 2026, while Apple shares dropped 7%, after the companies reported June quarter earnings on July 30, 2026. The divergence underscored investors' focus on each company's artificial intelligence prospects.

Revenue at Amazon Web Services, the company's cloud unit, jumped 37% year-on-year, marking the strongest expansion since 2021. AWS books most of Amazon's AI-related sales, making it a key indicator of demand for the company’s AI products.

Apple beat market expectations for earnings, revenue and iPhone sales but disappointed with its guidance for the current quarter. Revenue growth will be between 9% and 11%, the company said, short of the 12% growth analysts had forecast, according to LSEG.

The company cited supply constraints, including a significant memory shortage and competition for chip manufacturing capacity. Apple has already raised prices on Mac and iPad, and analysts expect an iPhone price increase later this year.

CNBC's Kif Leswing contributed to this report.