Apple escapes US ‘tech’ debacle, Amazon sinks by disappointing in the cloud and by its forecasts, Corporate news

It breaks for Microsoft, Alphabet, Meta and Amazon, but it works for Apple! The inventor of the iPhone will have been the only survivor within the American techs, which will have generally sunk on the stock market with the publication of their turnover and results for the period from July to September. The latest, the e-commerce and cloud giant Amazon, fell more than 13% on Wall Street this Friday.

In question, a slowdown in growth in the flagship business of the cloud. At 27.5% over one year, it is even the lowest in almost 10 years. The turnover of the AWS branch, launched in 2006, stands at 20.5 billion dollars, well below the 21.1 billion that were expected by the consensus. It accounts for 16% of the company’s total revenue, but more in terms of margins. Last year, Amazon’s cloud market share was 39%, up from 41% in 2020, according to data from firm Gartner.

The operating profit of the cloud division also disappointed, at 5.4 billion dollars, well below consensus expectations, which aimed for a level of 6.37 billion. The margin deteriorated by nearly 3 points, to 26.3%, against 29% in the second quarter, weighed down by wage inflation and despite fewer recruitments, but also by energy prices.

Disappointing forecasts

The other bad news comes from forecasts for the fourth quarter, a peak period for the e-commerce giant due to the holiday season. Like many other companies, Amazon must deal with the loss of purchasing power of consumers in a context of soaring prices. ” The macroeconomic environment remains challenging around the world, the continued effects of large-scale inflation, rising fuel prices and energy costs have impacted our sales growth as households lose purchasing power and that companies of all sizes reduce their spending on technology “, explained the financial director of the group, Brian Olsavsky.

For the last three months of the year, the group aims for a consolidated operating profit within a wide range of zero to 4 billion dollars, against 3.5 billion in the third quarter. Turnover would increase by 2% to 8%, or 140 to 148 billion dollars. This is significantly less than the 155.5 billion that were expected by analysts. Changes in exchange rates should have an impact of nearly 5%.

Meanwhile, in Cupertino…

Something to give a smile, perhaps, to the leaders of Apple, which has beaten expectations, whether in terms of turnover or profit per share. At 90.15 billion dollars, up more than 8% over one year, sales are well above the 88.9 billion anticipated, except, it is true, for iPhones, whose billings have certainly climbed by almost 10%, but only amounted to 42.6 billion, when the consensus was for 43.2 billion dollars in turnover, which represents almost half of the total. It was Mac sales that were the most dynamic, up sharply by more than 25%, to a total of 11.5 billion dollars. The group’s gross margin landed at 42.3%, 0.2 points above expectations.

This is better than what we expected at the start of the quarter “, rejoiced Luca Maestri, the financial director of Apple. No quantified forecast for the current quarter, the biggest, as for Amazon, for Apple. But indications were given to investors during a conference call. Growth for the last three months of the year will be lower than the 8% recorded between July and September. In particular, hopes are pinned on the new iPhone 14 lineup, which only contributed to sales last quarter for just eight days. A range that includes two basic models, at a lower price, and two more premium, with the designation “Pro”. On the stock market, Apple shares are gaining a bit of ground, a virtual feat.

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