Apple and Amazon Decline; Airbnb Travel Weakness; Chevron Takes a Hit

On this episode of Stock Movers:
- Apple (APPL) shares are lower this morning after the iPhone maker reported service revenue for the fiscal second quarter that trailed the average analyst estimate. The company expects $900 million in higher costs from tariffs this quarter and warned that revenue will increase by a percentage in the low- to mid-single digits, below analyst estimates.
- Amazon (AMZN) is following Apple downward this morning after it said it expects a tougher business climate in the coming months due to tariffs and economic turmoil, which may affect consumer spending. The company's operating profit forecast for the current period is weaker than expected, citing factors such as tariffs, currency fluctuations, and recessionary fears.
- Airbnb (ABNB) shares in decline this morning after giving a very weak travel outlook that is affecting their bottom line. The company is citing economic uncertainties for softer travel demand in the US. The company's growth for nights and experiences booked is expected to "moderate" from the 7.9% achieved in the first quarter, falling short of Wall Street's 8.6% projection.
- Chevron (CVX) share are also down despite beating its earnings estimates. Wall Street is punishing the oil giant after it announced it will reduce share buybacks this quarter to about $2.75 billion, 30% less than in the first quarter, due to tumbling oil prices.

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Episode Transcript

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

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

Speaker 1 (00:17):
Let's take a look at some stocks on the move today.
We are joined by Bloomberg's Pritty Gupta. Lots more earnings
to get through this morning, the focus shifting from big
tech to big oil, but of course, with so much
weight that tech has on the broader indexes, let's start
with what's going on with Apple and Amazon. Good morning, Pritty,
Good morning, Nathan.

Speaker 3 (00:37):
Let's do it. Apple really seeing a and has been
seeing a little bit of a warning and tough waters
ahead when it comes to their stock and their company,
especially when it comes to the tariff impact. Tim Cook
talking about a nine hundred million dollar hit to their
earnings that are just terror related in the quarter that
they just reported. So Apple very much taking a beating

(00:59):
this morning. In terms of share price, AAPL is your
ticker trading abut two hundred and six bucks a share,
down about three percent this morning. It's not alone, Nathan,
to your point, because Amazon's right on its heels. AMZN
is your ticker trading about one hundred and eighty eight
dollars a share down just shy of one percent this morning.
Amazon is interesting because of course they're going to get
hit by the tariffs as well, but they also reported

(01:21):
a miss when it comes to their clouds business unit AWS,
which actively competes with likes of Microsoft's Asia business, and
Oracle and Alphabet and all the other cloud players as well.
So Amazon, although sometimes we can see a pullback in
the commerce business, it's offset by their cloud business. This
time you saw a hit on both fronts, and that's

(01:42):
not something that the street is liking from a business
investment point of view, but also a tariff point of
view as well. So double whammy there for Apple and Amazon.
Very different from the messaging of Meta and Microsoft earlier
in the week. I want to stick with the tech
story a little bit, Nathan, I guess you can call
it a tech company. Airbnb is your biggest dropper this morning,

(02:03):
or your biggest weight this morning. Abnb is your ticker
down about five point six percent. This is the direct
impact of softness in US travel demand. All the times
we've talked about Europeans and Asians not wanting to come
to the United States, and that drop in tourism off
of some of the volatility emanating from Washington, DC. Airbnb
is confirming it to the point that they're giving a

(02:25):
fairly weak outlook in the read through and saying it
is actively affecting their bottom line in terms of the
input into the United States. Those shares down about five
percent this morning, trading at one hundred and seventeen dollars
a share. But Nathan, you mentioned it, it's not just
tech that's reported earnings, it's oil as well, big oil
specifically here in Europe. We had Shell come out with
their numbers. They reinforce their buybacks, launched a three and

(02:47):
a half billion dollars worth of share buybacks, and you
did see a massive rally despite some weakness in some
of their kind of operating margins. Chevron beat their estimates,
so the opposite of Shell, but missed on their buybacks.
So the point that is really suffering in the pre market.
I'll give you the numbers versus in the share price.
The second quarter buybacks coming in about two and a

(03:07):
half to three billion dollars. Their previous guidance was three
point nine billion dollars in their first quarter, so you
can see they're not suspending their buybacks, so they are
bringing them down just a touch, and the market is
punishing it for it, despite their earnings coming in strong,
down about two point four percent this morning. CVX is
your ticker, trading at just about one hundred and thirty

(03:29):
three bucks a share. When we talk about Chevron, we
got to talk about Xon as well and give the
company some love. XOM is your ticker this morning, and
traditionally the two move alike quite a bit, at XOM
moving in the opposite direction, trading higher by one point
three percent this morning. Their estimates actually coming in in line,
but it looks like there is always that relative trade

(03:50):
when it comes to Exon and Chevron, So Chevron's taking
a beating that tensely underpin Exon shares, but both reporting
lower profits ahead of those tariff numbers.

Speaker 2 (04:00):
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