Amazon's Weak Outlook, Apple's China Sales Miss, Delta Up

On this episode of Stock Movers:

- Amazon (AMZN) shares are down in extended trading as the company gave a weaker-than-expected forecast for operating profit in the current quarter, pointing toward a long list of factors including tariffs and trade that may cause consumers to pull back on spending. The world’s largest online retailer projected operating profit of $13 billion to $17.5 billion, compared with an average estimate of $17.8 billion. Sales will be $159 billion to $164 billion in the period ending in June, the company said Thursday in a statement. Analysts, on average, expected $161.4 billion.

- Apple (APPL) shares are down in extended trading as sales from China declined more than anticipated in the latest quarter, overshadowing otherwise solid results for the iPhone maker. Revenue from the country fell 2.3% to $16 billion in the fiscal second quarter, which ended March 29, the company said in a statement Thursday. Analysts had estimated $16.83 billion. Overall sales gained 5% to $95.4 billion, ahead of the $94.6 billion average estimate. Apple had projected percentage growth in the low- to mid-single digits.

- Delta Air Lines (DAL) shares have small gains in after hours trading. The airline says that the head of its Endeavor Air regional carrier will step down, but remain with the parent company. Jim Graham’s departure as Endeavor chief executive officer is part of a plan that’s been in the works almost a year, he said in a Thursday memo to the airline’s executives and directors seen by Bloomberg News. Graham retains his role as a senior vice president with the Delta Connection regional operation, Delta said in an email.

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:08):
The Stock Movers podcast, your roundup of companies making moves
in the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:18):
Let's get a look at some stocks on the move today.
Bloomberg News Managing editor for the Bloomberg Markets Live Blog,
Christina Quino is here with us. What is on your radar?

Speaker 1 (00:26):
Well, we have to talk about it, Amazon and Apple,
of course, Tim Let's start with Amazon. Well, yeah, because Caroyl,
you're exactly right right, it's you know, what is going
on with that miss in the operating profit for the
current quarter i AWS though was slightly a beat. It's
a seventeen percent gain to twenty nine point three billion dollars,
so it's not a bit it's more in linement analysts estimates.

(00:48):
But that is still the slowest growth in the year.
So probably a lot of questions over whether the valuations
that we're seeing for Amazon at the moment, does that
still justify the potential, particularly on the AI front, And
of course probably a lot of questions over their supply
chain because that is the one thing that is a
lot on a lot of people's minds. Remember the Amazon
made headlines earlier this week because there was a report

(01:09):
that said the company was considering displaying the cost of
tariffs to shoppers, which the White House lam based them
for for and ultimately they said that they wouldn't implement
it even though they were considering it.

Speaker 4 (01:21):
Yeah, no, it's going to be fascinating. What else in
terms of color and commentary will get around these numbers,
because there wasn't a lot initially in the press releases,
but we did mention that Amazon shares definitely taking a
hit here in the aftermarket.

Speaker 1 (01:39):
What else, well, Apple, course, the big focus there is
that second quarter Greater China revenue missing estimates just ever
so slightly sixteen million dollars versus an estimate for sixteen
point eight billion. But of course, again that supply chain
question right, especially now that tariffs are front and center,
probably going to take center stage for that analyst call.

(02:00):
The goodness, I suppose is that the iPhone revenue beating
slightly here forty six point eighty four billion dollars versus
an estimated forty five point ninety four billion. We did
know that Apple was slowly starting to shift its production
line right from China, even though that was a week
spot for them. We did get a report last week

(02:21):
saying that they were seeking to import most of the
iPhones that they sell in the US from India by
the end of next year. But that's of course an
ongoing process and clearly that's not yet complete, and so
there's still a lot of exposure for them when it
comes to this US China trade engine.

Speaker 3 (02:36):
You reported for Bloomberg outside of the US for many years,
London and Singapore. What was your view then, and you've
been here in the US for a few years, But
what was the view then on Apple and Apple products?
High end of the market, luxury market, like, what was
the view?

Speaker 1 (02:50):
Yeah, I mean I think it was still considered one
of the best of the best, you know. When it
comes to the consumer phone sector, though, I have to
say I did see a lot more Android in Europe
and in Asia because there was a kind of Samsung
competition that was coming around, and I was one of
the early adopters. Actually remembered it was folding phones that

(03:10):
Samsung had. I had one of those giant folding phones.
It was pretty cool, though it got a little too
big for me. Actually, I just switched eventually. I'm still
an Android user though, which I get ridiculed for constantly
by my friends in the US.

Speaker 4 (03:23):
That's so funny. Shares an Apple that we should point
out down about two and a half percent in the
after mark. It got another name for us.

Speaker 1 (03:29):
Yeah, we're looking at Delta this afternoon. We're just seeing
some small games here in the postmarket. Seven times of
one percent last week looked and that was because we
reported earlier. Bloomerard News reported that Jim Graham, which is
who is the head of its Endeavor Air regional carrier,
will step down but will still remain with a parent company.
There was an Endeavor flight that was involved in an

(03:52):
accident on February seventeenth, in which one of the aircraft's
hit the runway, tilted, did right, and left twenty one
of eighty people on the flight injured. Though Delzel was
declining to site specifically what the reason was for this move,
but we did get that news slightly before close today
and you see Detal shares up slightly in the postmarket.

Speaker 4 (04:11):
They are and it looks like they also am I
reading this right, yep. Authorizing a one billion dollars share
buy back program, right, So that is certainly something that
can get analysts, not analysts, but investors excited.

Speaker 2 (04:24):
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