Days after announcing a large job cut, Amazon (AMZN) shares are set to jump today. The firm posted third-quarter results, lifted by two categories.
Amazon’s AWS and advertising growth easily offset profit margin pressures. AWS net sales grew by 20% Y/Y to $33.01 billion. Advertising accounted for $17.7 billion in revenue. Retail store revenue increased by 10% to $67.41 billion.
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Apple (AAPL) reported a 6% Y/Y rise in iPhone sales in its fiscal Q4 report. EPS topped $1.85 on revenue of $102.47 billion (+7.9% Y/Y). Wearables sales fell by 0.3%. In addition, revenue from China fell by 3.6% Y/Y to $14.49 billion. Analysts expected around $16.5 billion in revenue from Chinese markets.
On Thursday, Chipotle (CMG) slumped by 18.18% to close at $32.53. CEO Scott Boatwright warned of persistent macroeconomic pressures. Moreover, the younger consumer in the 25 to 35-year-old age group is challenged. They are facing unemployment, higher loan repayment, and slower real wage growth.
Chipotle does not have the flexibility to cut prices. The firm must improve food quality, invest in the physical stores, and offer customers good value for what they pay for. If consumer satisfaction falls further, Chipotle’s earnings will worsen.
