Apple and Amazon Miss Analysts’ Estimates, Crypto Tanks

Apple and Amazon: Bitcoin and Ethereum fell after Apple and Amazon earnings announced their latest financial results in after-hours trading.

Bitcoin dropped sharply from $20,621.23 at roughly 4 p.m. ET to $20,293.40, while Ethereum declined from $1,561.40 to $1,515.33. Bitcoin has since recovered to $20,362.

ADA fell from $0.401457 to $0.390022, and DOGE dropped from $0.082271 to $0.078966.

Apple misses analysts’ expectations

In its full-year earnings, iPhone maker Apple announced that sales for the iPhone were up 9.7% from the previous year at $42.6 billion. This amount accounts for about half of the Cupertino company’s revenue. It missed analysts’ expectations by $400 million.

The company’s annual revenue is 8% higher than a year ago at $90.1 billion. Net income hit $20.7 billion.

Before its full-year earnings announcement, analysts predicted that Apple would have benefited from increased demand for its latest two iPhone 14 Pro Models. In July 2022, CEO Tim Cook said that the company had no substantive data to suggest that difficult macroeconomic conditions significantly impacted the company’s smartphone sales. 

While fellow PC maker Intel faces stiff headwinds, the iPhone maker has experienced significant popularity of its Pro models. Consumers have recently been willing to fork out extra for 5G technology. Apple introduced 5G in 2020. 

But one analyst at Bernstein research believes that rising interest rates could affect demand for Apple’s products. This demand adjustment could happen while high inflation and Fed interest rate hikes keep consumers locked in a delicate dance. And with the Fed set to reduce the frequency and size of its interest rate hikes, demand for Apple’s hardware could be renewed.

Amazon revenue hit hard

Amazon has experienced substantial growth in its Amazon Web Services cloud computing division. 

But third-quarter earnings revealed that Amazon’s revenue increased by 15% to $127.1 billion compared to last year. This number slightly missed Wall Street estimates. The e-commerce giant’s net earnings declined 0.3% to $2.9 billion this year, including non-operating income derived from a partnership with electric car company Rivian.

CEO Andy Jassy said, “…there is a lot happening in the macroeconomic environment, and we’ll balance our investments to be more streamlined without compromising our key long-term bets.”

The company’s shares fell 20% in after-hours trading after it announced a revenue forecast of $140 billion to $148 billion. Wall Street had been expecting over $155 billion.

Cloud competitor Alphabet has seen $39.5 billion in search revenue for the third quarter, an increase of 4% from the previous quarter. Considering that search was previously a consistent money-maker, analysts suggest that moderate numbers show that small businesses are pulling back from advertising on the platform. Google’s cloud business earned $6.9 billion in revenue in the third quarter, up 37.6% from the second quarter.

Cupertino-based Apple’s stocks closed the trading day 3% lower at $144.80, and Amazon’s stock price fell 4.06% to $110.96.

The Nasdaq Composite is down 3% at 11059.8.

Given the recent correlation between tech stocks and crypto, a fall in the tech-heavy Nasdaq composite and tech stocks themselves could indicate that crypto may be in for a slight bearish pivot in the coming days.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here

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