The quarterly results from Apple and Amazon have helped bolster investor confidence, despite the uncertainties looming from the economic downturn.
Together, Apple and Amazon have increased their market value by about C$175 billion. Amazon’s shares rose about 11 per cent to C$135.50 after the company forecast higher-than-expected third-quarter revenue. Apple’s shares rose more than 3 per cent after the company noted that demand for the company’s iPhones remains high.
“The results are good enough to support Apple’s stock, which has done much better in the current market rout, further justifying the company’s ‘safe haven’ status when the going gets tough,” said Haris Anwar, an analyst at Investing.com.
Tech companies are facing challenges caused by inflation, which has forced customers to cut spending. Also, a strong U.S. dollar is taking companies further away from their annual forecasts.
Amazon is also struggling with falling customer spending, but the company is banking on its booming cloud business, coupled with an increase in service offerings, to cushion the impact of rising costs.
Good quarterly results from Google’s Alphabet and Microsoft also bode well for investors amid rising inflation and economic slowdown.
The sources for this piece include an article in Reuters.