Tech Titans Roar: Amazon Soars, Meta Surprises, Apple Steadies

The Big Tech sector roared back this week, shaking off recent jitters as industry giants Amazon, Meta, and Apple all reported strong earnings after hours yesterday. The news sent their stock prices soaring, injecting optimism into the broader market.

Amazon Surprises with Cloud Growth

The e-commerce behemoth exceeded expectations, reporting its highest quarterly profit ever thanks to continued double-digit growth in its cloud computing business, Amazon Web Services (AWS). AWS revenue surpassed $21 billion, solidifying its position as the market leader. However, the company’s core retail business saw slower growth, highlighting ongoing challenges in the broader e-commerce space.

Meta Shares Skyrocket on Record Highs

Formerly known as Facebook, Meta defied expectations with a blowout earnings report. The company crushed analyst estimates on both revenue and earnings, driven by strong advertising performance and continued user growth. The announcement of a new quarterly dividend and a massive $50 billion share buyback program sent the stock soaring by 13% in after-hours trading, pushing it to a record high.

Apple Delivers Solid Performance

The iPhone maker reported its first quarter of sales growth in a year, boosted by strong demand for the newly launched iPhone 15. However, its earnings fell slightly short of expectations, raising concerns about slowing growth in its wearables and services businesses. The stock saw a modest gain after hours, reflecting a cautious investor reaction.

Technical Analysis: Amazon (AMZN)

• Short-term: AMZN faces resistance at the $4,000 mark, a key psychological level. A decisive break above could signal further upside potential. However, a pullback towards the $3,750 support level is also possible.
• Moving averages: The 50-day MA is trending upwards, indicating short-term bullish momentum. The 200-day MA remains flat, suggesting a wait-and-see approach from long-term investors.
• Technical indicators: The Relative Strength Index (RSI) is currently at 65, indicating the stock is neither overbought nor oversold. The MACD indicator is showing a bullish crossover, suggesting potential for further upward movement.

Future Outlook for Big Tech

The recent earnings reports paint a mixed picture for the tech sector. While Amazon’s cloud dominance and Meta’s surprising strength are encouraging signs, Apple’s slowdown raises concerns. For traders, Amazon’s technical analysis suggests a cautious approach, with both upside and downside possibilities depending on price action in the coming days.