Apple Beats Estimates, Amazon's AI Spending Worries, Reddit Surges | Stock Movers

Apple's Strong Earnings Performance

• 🍎 Apple (AAPL) shares surged after reporting third-quarter revenue that significantly surpassed analyst estimates.
• 📈 Revenue increased by 9.6% to $94 billion, driven by strong sales of the iPhone and products in China.
• 💡 Services also performed well, exceeding Wall Street's projections, indicating a comeback in the Chinese market despite local competition.

Amazon's AI Spending Concerns

• 📉 Amazon (AMZN) shares fell in after-hours trading due to a gloomy forecast for third-quarter operating income.
• 💰 Investors are worried that the company is spending too much on AI infrastructure, impacting profitability.
• 📊 While revenue beat estimates, Amazon Web Services (AWS) growth was only slightly ahead of expectations, highlighting the cost of the AI arms race.

Reddit's Profitable Quarter and Advertising Strength

• 🚀 Reddit (RDDT) shares jumped significantly after the company reported its most profitable quarter to date.
• 📈 Projected third-quarter sales surpassed analyst expectations, signaling the strength of its advertising business.
• 🧠 The company is also considered an "AI name" as many Large Language Models (LLMs) use Reddit data for training.