Amazon fuels AI optimism; Apple sinks premarket on weak outlook

Investing.com - U.S. stock index futures extended gains on Friday as easing concerns over the durability of the artificial intelligence boom boosted technology shares, with Amazon leading gains after strong cloud growth helped offset fresh disappointment from Apple’s cautious outlook.

Optimism around AI spending and demand helped lift semiconductor stocks after Amazon reported its strongest cloud growth in more than four years and highlighted rapid expansion in its custom chip business. However, weakness in Apple and several earnings laggards kept investors selective ahead of the opening bell.

By 05:42 ET (09:42 GMT), Dow Jones Industrial Average futures were up 261 points, or 0.5%, S&P 500 futures had gained 35 points, or 0.5%, while Nasdaq 100 futures climbed 317 points, or 1.1%.

Here are some of the biggest premarket U.S. stock movers today:

Amazon surged more than 12% after the e-commerce and cloud computing giant reported its strongest cloud revenue growth in over four years, reinforcing investor confidence that its massive artificial intelligence investments are paying off. Amazon Web Services said businesses powered by its custom AI chips have reached a $25 billion annual revenue run rate, while investors largely looked past plans to increase capital expenditure to $220 billion.

Marvell Technology rose 7%, while Astera Labs gained 8%, after Amazon’s AI and cloud update boosted sentiment across AI infrastructure stocks. Investors viewed the growth in Amazon’s custom chip business as a positive read-through for suppliers tied to AI networking and data center buildouts.

Replimune soared 125.3% after the FDA’s Cellular, Tissue, and Gene Therapies Advisory Committee voted 10-3 in support of the efficacy of the company’s RP1 therapy in combination with nivolumab for advanced melanoma. The panel concluded the late-stage trial produced clinically meaningful results, contradicting FDA staff concerns over the study’s design.

Apple dropped 7.3% after the iPhone maker issued fourth-quarter revenue guidance that fell short of Wall Street expectations despite posting record quarterly revenue. The company warned that shortages in advanced chip manufacturing capacity would constrain iPhone, Mac and iPad shipments during the September quarter.

Roblox tumbled 16.5% after the online gaming platform reported weaker-than-expected bookings growth, lower-than-forecast daily active users and disappointing forward guidance. Although the company posted a smaller-than-expected quarterly loss, investors focused on slowing engagement and sharply moderating bookings growth.

GoDaddy fell 10.9% after the web services provider issued full-year revenue guidance below Wall Street expectations. While quarterly earnings and revenue both topped estimates, investors were disappointed by signs that growth could slow after a strong run-up in the shares.

Western Union slid 7.7% after the money transfer company missed quarterly earnings and revenue estimates and lowered its full-year outlook. Margins narrowed as weakness in its Americas retail business and delays in completing the Intermex acquisition weighed on profitability.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Could Intel return to the red-hot memory market after $20B raise and recent hire?
• Cisco rating cut at HSBC as analyst sees a lack of catalysts