Microsoft, Apple thrive as Amazon stumbles in latest tech report card

The latest quarterly earnings reports from some of the world's leading technology companies have presented a mixed bag for investors. While some tech behemoths celebrated strong growth driven by AI and cloud services, others faced headwinds from economic shifts and intense competition.

Amazon's unexpected dip

Amazon's stock took a significant hit, falling 8% in after-hours trading, despite the e-commerce and cloud computing giant reporting better-than-expected Q2 2025 earnings and revenue. The company announced $167.7 billion in revenue, a 12% year-over-year increase, and an earnings per share (EPS) of $1.68, surpassing analyst forecasts.

Amazon Web Services (AWS) continued its robust performance, with revenue growing 17.5% to $30.9 billion, and advertising revenue also saw a healthy 22% increase. However, the market seemed to focus on operating profit estimates which sent shares down.

Microsoft's stellar performance

In stark contrast, Microsoft delivered a standout fiscal performance, significantly surpassing Wall Street's expectations across all key financial metrics. The tech giant's revenue surged 18% year-over-year to $76.44 billion, with diluted earnings per share reaching $3.65, both comfortably beating analyst estimates.

The primary driver of Microsoft's success was its Intelligent Cloud segment, particularly Azure, which saw an impressive 39% growth in constant currency. This strong cloud and AI demand propelled Microsoft's total Cloud revenue to $46.7 billion, up 27% year-over-year.\

The company's robust results led to a gain of as much as 6% in after-hours trading, pushing its market capitalization above $4 trillion for the first time.

Apple's consistent growth

Apple continued its trend of strong performance, reporting a record June quarter revenue of $94.0 billion, a 10% increase year-over-year. Diluted earnings per share climbed 12% to $1.57. The growth was broad-based, with double-digit increases in iPhone, Mac, and Services sales across all geographic segments.

CEO Tim Cook highlighted the strong demand for the iPhone 16 series, noting it as the "most-popular iPhone lineup in the world right now," surpassing the performance of its predecessor.

Tesla's mixed signals

The electric vehicle (EV) manufacturer reported an adjusted EPS of $0.40, a decline from the prior year and slightly below consensus estimates. Total revenue reached $22.50 billion, a 12% year-on-year decrease, primarily due to a 13% drop in vehicle deliveries to 384,122 units.

Despite the automotive segment facing intense competition and pricing pressures, Tesla's energy generation and storage segment, along with its expanding Supercharger network, partially offset these losses.

The company also confirmed it has begun production of its initial lower-priced models, with output expected to accelerate in the second half of the year.

Investors showed cautious sentiment, with the stock seeing a slight decline in aftermarket trading despite meeting EPS expectations.

Reddit's impressive surge

Social media platform Reddit delivered a stellar Q2 2025, significantly exceeding Wall Street's expectations and sending its shares soaring by over 13% in pre-market trading. The company reported a remarkable 78% year-over-year increase in revenue, reaching $500 million, alongside a net income of $89 million. Advertising revenue, a key driver, surged 84% to $465 million, boosted by new AI-enhanced ad formats.

Reddit's Daily Active Uniques (DAUq) jumped 21% year-over-year to 110.4 million, demonstrating strong user engagement. The company also announced a strategic shift to prioritize its core product improvements, making Reddit a "go-to search engine," and expanding internationally, while deprioritizing some initiatives like its user economy.

Overall, the latest earnings season highlights the diverging paths within the tech sector. While AI and cloud computing continue to be powerful growth engines for companies like Microsoft and Meta (which also reported very strong results), traditional retail and automotive segments face greater volatility and competitive pressures, even for industry leaders like Amazon and Tesla.