While analysts noted these companies were not completely immune to broader economic hurdles, they said the weakness in consumer spending is not likely to send these firms into the red, deeming them “always reliable to buck the trend.”
Amazon’s shares rose about 11 percent to $135.50 after the e-commerce titan forecast upbeat third-quarter revenue, while those of Apple rose more than 3 percent as the company said appetite for iPhones remained strong despite consumers’ tightening spending.
“The results are good enough to support Apple’s stock, which has done much better in the current market rout, further justifying the company’s “safe haven” status when the going gets tough,” Haris Anwar, Investing.com analyst, said.
The US stock market’s hyper surge in the past decade has been fuelled by high-growth and megacap companies, but rising interest rates to combat decades-high inflation as well as a sharp rally in the dollar have taken a toll since the start of the year.
Amazon, like much of the retail industry, is bracing for a pullback in consumer spending as people stick to lower-priced essentials to tide over economic woes.
The e-commerce giant’s booming cloud business, coupled with a ramp up in service offerings, is likely to help cushion the impact of soaring costs.
“We think that the consumer is not as strong as may be portrayed by the reaction to Amazon.”