Earnings Events on Apple & Amazon: Review & Winners Announcement

The turmoil at its China assembly facility has been an awakening call for Apple executives to further expedite on diversifying its supply chain by moving out from China.->

The risk of potential recession remains there which might affects people’s buying power and to spend less on electronic gadgets ->

The US dollar appreciated over 12% in 2022, hitting a two-decade high in September 2022, but has trended weaker since then following Fed’s less aggressive monetary policy. ->

Apple does a good job at refreshing product portfolio to incorporate new technology, including its ARM architecture supported by the M-series chips. HomePod, M2 & M2 Pro Mac mini, 14/16” M2 Pro/Max MacBook Pro and more to come is going to stir up market excitement.->

Service segment (the sales of app & digital medias) is likely to reach a greater height after recorded its highest revenue in Q1FY23. ->

It's unusual for Apple to have two materially negative years in a row (the last time was during the dot.com crash in the early 2000s), so the odds favour the bulls in 2023? ->

Although Apple Q1 2023 revenue dropped by 5% since 2016, it remains stronger than ever as it won the market share in Q4 2022, as recorded in its highest ever market share: 25%. This may also mean that users using an Apple products such as iPhones may continue to have a lesser chance to get hacked.

After losing much in china market,  Apple are now  very much dependent on India. From setting up of manufacturing sites to plans of opening up more retail stores in view of the Indian potential. iPhone sales should soar along with Apple stock market given India is the world’s second biggest population.  Although household income there remains low, it’s worth noting that India is expected to become one of the world’s fastest-growing economies over the next decade.
Aside from products, Apple also benefits from higher services revenue from its app store, music subscriptions, advertising, etc.
More importantly, the Apple continues to facilitate large returns to shareholders. Not forgetting Apple will, as reported, be spending billions in stock buybacks. It’s for those above reasons Apple stock will still be a buy stock for investors.

Apple has potential in the AI market, with its range of products already in homes. AI is another key mechanism to enhance existing products and services for Apple user base, and perhaps many more..
AI still feels foreign at present, we had a nice feel about it through ChatGPT, how would AI bring Apple to the next level? and what does Apple have in store for its loyalists?
In my opinion, AI may further shape and refine(note: not define) the identity of an entity, amplifying the uniqueness of the company. Before there was Apple and Microsoft over desktop computers and phones. At the time,  the ground is not levelled and Apple managed to pull through. Apple's identity as an entity is deeply rooted.
AI presents the opportunity that allow for companies to define what makes them unique, and leveling the playing field. There will be more opportunistic stocks to look at and be vested in.
It is an exciting future to think about for both consumers and retail investors.

While most investors believe that big techs' growth rates slow, Amazon's Q4 earnings also moved lower. In the last three months, the market has continued to decline. Despite the fact that revenue appears to be exceeding expectations, investment banks have consistently lowered Q4 performance when Q4 updated its expectations. The market is concerned about the slowing of AWS business. Some businesses put off migrating software to AWS or reduced AWS spending due to economic uncertainty. Poor guidance clearly falls short of market expectations. Rapid recruitment and expansion during the epidemic, and Amazon is currently laying off employees to cut costs due to warehouse, resource or labour costs. Despite the fact that economic uncertainty is high due to recession expectations, Amazon's retail business remains optimistic, and also included the field like streaming media, healthcare, entertainment and so on.  

Amazon has had its worst performance as they faced a range of headwinds due to global slowdown economy. Unevitably their revenue growth has slowed sharply resulting shrinking profit margin.
Amazon management are quick to react with its drastic cost-cutting measures by laying off 18,000 employees, and shuttering new businesses like Amazon Care, its healthcare start-up, and Scout, its home delivery robot. Report are also saying they are pulling back spending on Alexa, its voice-activated technology division.
Expectedly 2023 are going to be a challenging year for Amazon, given its size, especially with the macroeconomic challenges. The company's e-commerce and cloud computing businesses are sensitive to the business cycle.
Bad news aside. The good news are that Amazon stock looks cheap, the lowest since 2014. For the stock to recover, Amazon will have to do one of two things. It will have to either reaccelerate its revenue growth or improve its bottom line.  Focusing on growing their high-margin businesses like Amazon Web Services, its third-party marketplace, and advertising could be their next strategic moves. With such recognizable improvement plannings, negative sentiment should shift and the stock will be rewarded for investors who still show great faith in Amazon. After all, this is still a company with significant competitive advantages and several dominant businesses.