Apple, Amazon Dip in After-Hours Trading Despite Earlier Tech Stock Rally

NEW YORK: Shares of both Apple and Amazon.com declined in after-hours trading on Thursday, as projections including Apple's anticipated tariff expenses let down investors following a rise in U.S. tech-related stocks earlier in the day. Apple's shares dropped 4 per cent following the closing bell. Although the company's performance exceeded analysts' expectations, CEO Tim Cook mentioned that projected tariffs will increase costs by approximately $900 million for the quarter ending in June if the rates remain unchanged. Cook also detailed adjustments to the firm's supply chain to lessen the effects of U.S. President Donald Trump's trade conflict. Shares of Amazon.com fell by 2.5 per cent after the company announced its first-quarter growth in cloud revenue and projected operating income that was below expectations.

In the regular trading session, U.S. tech stocks, particularly those linked to artificial intelligence, surged significantly after better-than-anticipated earnings reports from Microsoft and Meta Platforms late in the prior session. The Nasdaq rose by 1.5 per cent for the day. Their findings alleviated concerns that the substantial investments in AI over the past few years would not yield returns. Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma, remarked that Apple "faces challenges on several fronts," and mentioned tariffs during his call. However, he mentioned that he remains optimistic about megacap tech stocks in general, highlighting the solid performances from other companies in the sector.

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Microsoft stocks closed up 7.6 per cent on Thursday following its announcement late Wednesday that AI's impact on Azure growth rose to 16 percentage points in the fiscal third quarter, up from 13 percentage points in the prior three months. The shares of Meta Platforms closed 4.2 per cent up. Its report, released late Wednesday as well, indicated that its AI-driven tools contributed to attracting advertising revenue despite economic uncertainty related to tariffs. Additionally, in the session, tech giant Nvidia increased by 2.5 per cent while Broadcom also saw a rise of 2.5 pr cent.

Amazon concluded the regular session with a gain of 3.1 per cent, whereas Apple finished with a rise of 0.4 per cent. A federal judge determined that the iPhone manufacturer breached a U.S. court directive to change its App Store. The leading U.S. tech and growth stocks, referred to as the "Magnificent Seven", faced difficulties in early 2025 as investor worries about the economic impact of Trump's tariffs increased. Although the group has recovered since Trump suspended several of his largest tariffs on April 9, investors have been monitoring their outcomes closely.