NEWS
Buyers Battered Amid Big Tech Results

Yesterday’s rally might’ve been a fever dream because today, money resumed its flow out of big tech and into defensive sectors like utilities and assets like bonds. Earnings reports from several of the sector’s ‘MVPs’ failed to inspire confidence, with many falling further after hours. Let’s see what you missed. 👀

Today's issue covers iPad kids saving Apple’s quarter, the Bank of England’s first rate cut, three tech names Stocktwits users are buying the dip in, and other earnings pops and drops. 📰

Here’s the S&P 500 heatmap. Notably, 5 of 11 sectors closed green, with utilities (+1.80%) leading and technology (-3.73%) lagging.

And here are the closing prices: 

P.S. We’re experimenting with different formats to streamline your experience. Like something, don’t like something, hit me up. I want to hear from you. 👍

EARNINGS
iPad Kids Save Apple While Amazon’s Outlook Looks Cloudy

Apple reported after the bell, and though it managed to stay slightly in the green, it was not the savior market bulls hoped for. With that said, the company did have an unexpected savior of its own this quarter…iPad kids. 🙃

The consumer tech giant’s core metrics all beat estimates except for Mac revenue, which came up just shy. But the standout was its iPad division, which grew nearly 24% YoY to $7.16 billion on the back of its first new model since 2022 being released during the quarter. 🤩

CEO Tim Cook said about half of iPad buyers hadn’t owned one before, suggesting to analysts that there could be more room for growth before the tablet market is completely saturated.

Services were the other standout, growing 14% to $24.21 billion in revenues, in line with Apple’s forecast and analyst estimates. 📈

Overall, it was a decent quarter, but investors had hoped for more specifics about artificial intelligence (AI) and its impact on future results.

Sentiment on Stocktwits ticked up into ‘bullish’ territory on the news, suggesting some retail investors view Apple as a potential ‘safe-haven’ amid the market’s recent uptick in volatility. 🛡️

As for the other “A” reporting today, Amazon had a rougher time because of disappointing third-quarter guidance.

As CNBC’s summary shows, the company’s total revenue missed expectations this quarter as advertising came in light.

Amazon’s core retail business continues to face competition from U.S. retailers and foreign competitors like Temu and Shein, so revenues rose just 5% YoY. The miss this quarter was primarily driven by consumers buying cheaper products than anticipated, leading to lower average selling prices. 🔻

Amazon Web Services (AWS) was a bright spot, though its 19% YoY growth is lower than Microsoft and Google’s, raising concerns about the company’s ability to keep up with its competition.

Management’s third-quarter revenue forecast lagged the consensus analyst estimate, with CFO Brian Olsavsky saying consumers being distracted by world events makes it a “tough quarter to forecast.” 😵‍💫

Investors are not giving companies the benefit of the doubt in this environment, especially big tech, where stock prices and expectations have risen quickly to record levels.

Shares are down 7% after the bell, though Stocktwits users may be buying the dip as the sentiment meter settles in ‘extremely bullish’ territory. 🐂

STOCKTWITS “TRENDS WITH FRIENDS”
Bitcoin Bulls, Biotech Breakouts, & Global Market Shifts 👀

Stocktwits co-founder Howard Lindzon chops it up with pals JC Parets and Phil Pearlman every Thursday on "Trends With Friends."

This week, technology expert and investor Michael Parekh is back to discuss Bitcoin’s long-term bullish trajectory, why eyes are on Solana, AI infrastructure companies like Vertiv, and the shift in global market trends.

Catch it live now on Spotify or Apple, and subscribe to catch each episode when it goes live!