Amazon posts $2 billion loss for the second straight quarter and Apple profits fall 8%

Amazon on Thursday announced a $2 billion loss for the second straight quarter, as consumers returned to bricks-and-mortar stores, while Apple’s profits fell 8 percent.

Tech stocks were rallying after-hours, however, because both Apple and Amazon’s sales surpassed expectations – despite inflation and economic turmoil raising fears of a recession.

Apple on Thursday reported profit and sales that beat Wall Street’s predictions.

The company navigated parts shortages better than predicted and benefited from unceasing demand for iPhones – even as inflation has consumers tightening other spending.

Amazon sales topped $121 billion in the quarter, but the company logged a loss of $2 billion dollars as it continued to work to rein in costs. 

Its shares still jumped 10 percent in after-hours trading. 

The retail giant also posted a loss of $3.84 billion in this year’s first quarter – its first quarterly loss since 2015, which was also marked by a large Rivian write-down. 

Apple said sales and profit for the quarter ended June 25 were $83.0 billion and $1.20 per share, above estimates of $82.8 billion and $1.16 per share, according to Refinitiv data.

Apple’s profits were down 8 percent from the same quarter last year, but the company’s stock rose 3 percent in extended trading after the earnings were better than expected.

Apple is expected to give a forecast for the current fiscal fourth quarter during an investor call, but Chief Financial Officer Luca Maestri told Reuters there had been no slowdown in demand for iPhones.

Investors are watching Apple closely as economic indicators turn negative. In the past, the iPhone maker’s loyal and relatively affluent customer base has helped it weather dips better than other consumer brands.

A crowded period of earnings from the world’s biggest tech firms has mostly disappointed, but investors have seemed relieved the news was not worse.

Recession fears, a strong dollar, shrinking advertising budgets and inflation — tech companies’ pandemic-era booms have now tipped into a downturn.

Developing story, more to follow.