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What is the main topic discussed in this episode?
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News when you want it with Bloomberg News Now. I'm Doug Krisner. There were several big earnings reports after the bell. Amazon reported second quarter results beyond expectations. The booming demand for AI services accelerated sales for a fifth straight quarter. Revenue for Amazon Web Services jumped 37%. And we got reaction from Gil Lurie, a head of technology research at D.A. Davidson.
The key to Amazon, just like the key to Google's growth last week, the key to Amazon is that Anthropic is such a big customer. Amazon is providing most of Anthropic's compute, and that huge ramp in Anthropic results this year is flowing through Amazon Web Services. That's why they have this accelerating growth, because they were wise enough invest in Anthropic early on and secure that Anthropic use their compute.
That was Gil Luria from D.A. Davidson. Now on the negative side, Amazon's outlook for revenue in the current quarter was a bit disappointing. Even so, the stock is up 9% in late U.S. trading. Apple reported record sales for the latest quarter, reflecting strong demand for last year's iPhone lineup. The company also reported surprising strength in sales of Mac computers. You see, they've become popular for certain AI applications. On the negative side, Apple had slower sales last quarter in China and in its services business. We got reaction from Bloomberg's Mark Gurman.
My take is that the iPhone number looks great. My take is that the Mac number looks amazing. My take is that service is a little soft and the China number missed the estimate we have here on the Bloomberg terminal. But at the same time, that is, you know, pretty nice growth on an annual basis where they were sort of, I guess, in the toilet in China a couple of years ago and last year. But they've totally rebounded there.
That is Bloomberg's Mark Gurman. Shares in Apple are down 8% in late U.S. trading.
How did Amazon's Q2 results show AI demand is boosting AWS growth?
Reddit is projecting revenue for the current quarter above street expectations. Now, this extends a track record of strong sales growth driven by a more diversified advertising business. However, the market was hoping to see a shift to AI training since there have been worries over how Reddit may be disrupted by artificial intelligence. Shares in Reddit are down 12% in late U.S. trading. Rivian Automotive reported better-than-expected earnings as the company began deliveries of a new mid-sized sport utility vehicle. The stock is up by more than 1% in late U.S. trading. There was an explosive rally among semiconductor stocks today, reflecting the view that the recent selling of the group was overdone.
We had the Philadelphia Semiconductor Index jumping by more than 8%, and other areas of the AI trade rallied as well. Microsoft surged 15% on strong cloud growth. Oracle jumped 8% after expanding its Gemini AI partnership with Google. Shares in Jersey Mike slumped nearly 9% on their trading debut. The company and some of its shareholders raised a billion dollars in an IPO that priced at the midpoint of its marketed range. Here is Jersey Mike's CEO, Charlie Morrison.
This is a brand that's been built over many, many years. We have a rich history of over 70 years. The last 20 years alone, the only brand that can cite 20 consecutive years of positive same-store sales growth. We've been able to navigate the choppy waters over many, many, many times through our cycle. Even this year, year to date, same-store sales continue to grow. We've seen sequential improvement from quarter one to quarter two, exiting quarter two at 2.3% same-store sales growth, most of that driven by traffic.
Why is Anthropic cited as a major driver of Amazon Web Services' revenue surge?
That is Charlie Morrison.
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Chapters
4 chapters
1
What is the main topic discussed in this episode?
0:00–2:22
2
How did Amazon's Q2 results show AI demand is boosting AWS growth?
2:22–4:02
3
Why is Anthropic cited as a major driver of Amazon Web Services' revenue surge?
4:02–5:57
4
What mixed outlooks and market reactions followed Amazon and Apple earnings?
5:57–7:25
Speakers
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