Closing Bell - Big Tech Earnings Parade Rolls On With Amazon & Apple 5/1/25

Episode Date: May 1, 2025

Earnings pour in from Amazon, Apple, Roku, Airbnb, Reddit, Block, and more. The market panel features Adam Crisafulli and Stephanie Link breaking down the numbers as they come in.Maxim’s Tom Forte on Amazon's results, and our Steve Kovach walks through Apple numbers. The panel—Crisafulli, Link, and Patrick Moorhead—reacts live to the headline print and exec commentary. Khozema Shipchandler, Twilio CEO, joins Jon to discuss their quarter.Angelo Zino looks ahead to what's next for Apple.

That's the end of regulation. Charles Schwa bringing the closing bell. The New York Stock Exchange, Aluma, doing the honors at the Nasdaq. We got green on the screen to kick off the month of May, although fading some of those gains here in the final moments. With tech leading the charge as the Dow and S&P 500 make it eight straight positive days. That is the scorecard on Wall Street for the actions just getting started. Welcome to Closing Bell Overtime. I'm Morgan Brennan along with John Ford. It is Apple Day on Overtime. Results are just minutes away as the stock comes off an eight-day win streak of its own heading into the print. Plus many more quarterly results are coming including Fellow Mag 7 named Amazon, also

Airbnb, Block, Reddit, Twilio. And access you'll only get here on Overtime, an exclusive interview with Twilio. And access you'll only get here on overtime, an exclusive interview with Twilio CEO before his call with analysts on the street. Now as we await earnings, let's get straight to today's market action. Joining us now is Hightower Chief Investment Strategist and CNBC contributor Stephanie Link and Vital Knowledge founder Adam Krissafouli.

Guys, welcome. Stephanie Nasdaq had a strong day, partly thanks to Microsoft and Metta up around 7.5, 4 a half percent Amazon was also up about three so now we're and the Amazon is out we're going through those numbers now now that we're over 5600 on the S&P how much can Amazon potentially help or is the bar just high now well the bar is a little bit higher after today, but the stock's still down 22% from its highs.

And it's trading at about 13 times EBITDA. And historically, it's traded about 17 times EBITDA. There's a lot of puts and takes to all of these MAG7 companies. And for the most part, I mean, what a sigh of relief from yesterday. I would have preferred not have an up 3 and a half percent day for Amazon headed into this. But that being said, the key, the key number is what their guide is for the second quarter for operating profits. 17 billion is the bogey that we're watching. I know we care about AWS and what

that's going to do as well. 15, 16 percent growth is expected and any guidance in terms of a pickup in the second half Of the year with supply chains getting better for AWS, but those are the two numbers that I'm going to be watching Would you say that was again? 17 billion for operating income yeah 17 billion for the operating income 11.2 percent operating margin and 15 16 percent AWS I can tell you that's within the range that they're guiding to, but it's above the middle. We'll get those numbers in just a moment.

We're ready with them. Kate Rooney has the numbers for Amazon. Kate, how do they look? Hey, John, yes, it was a beat in the first quarter on EPS at least, earnings and revenue stronger than expected. It looks like slightly light here on operating income. And then the AWS number, the rate that is 17% Street was looking for 17.6% and the

whisper number a lot of analysts had expected that to be even higher you see shares reacting sharply down almost 5% on that news I mentioned the operating income guidance are looking for between 1313 billion and $17.5 billion. That was versus street estimates of $17.6 billion. So light there as well. Q2 revenue, they're looking for the current quarter between $159 billion to $164 billion. That one is in line there. We're still looking through the numbers, guys, but a miss on AWS growth, and that appears

to be what's hitting shares here. But we'll bring you more as we keep digging through this. Back to you. Yeah, Stephanie, I think what you're just telling us about that operating income number. Adam Chrisafulli, let's give you a turn here on Amazon. How much of a concern, AWS, not really shocking folks to the upside here,

and the operating income guide is either conservative or just straight up disappointing? Yeah, so, you know, of the major hyperscalers in the cloud side, Microsoft obviously had very strong results last night. So this probably will create some talk about whether or not Microsoft is taking share. You know, if you look at what Microsoft said, they said the big upside for their Azure business was cloud migration, not necessarily AI. AI was strong, but it was cloud migration coming from their core corporate software customers. So this could probably raise some concern about share gain from Azure. And then

remember there's another big part of Amazon that has a lot of exposure to what's happening with trade policy globally, and that's probably feeding into some of the disappointment on the operating income side. Okay, we got shares of Amazon down about four and a half, almost five percent right now. Steph, you set us up for those first round of results from Amazon. What's your reaction now? So the operating income number for the first quarter was better than expected at 18.4 billion I think numbers were kind of as I say in the first quarter 17 billion So a little bit better there operating margins also a little bit better That's that's encouraging as they've been seeing a lot of progress in terms of margins, especially on North America retail In the first quarter, $17 billion, so a little bit better there. Operating margins also a little bit better.

That's encouraging, because they've been seeing a lot of progress in terms of margins, especially on North America retail. Second quarter, I have to tell you guys, I'm not that disappointed with the guidance for 17% AWS growth for 2Q, and also for the numbers in terms of operating income guide. That's kind of like what I was expecting. And we still have to obviously figure out what they're gonna do with CapEx and all that sort of stuff.

But I think that this was fine. I just think that the stock has rallied, you know, off the lows. It's up 14% from the April lows. And so maybe it gives back a little bit, but I think you're gonna get an opportunity to buy Best in Breed on sale for sure. I mean, you're still gonna to see improving Gen AI this year.

You're still going to see second half of the year AWS supply chains getting better. You're still going to see operating margin expansion in North America retail. We'll get through tariffs. If you get it down five, six percent in the stock, I think you buy it. Okay. We've got more earnings to bring you. Airbnb results are out and DeerjBosa has those numbers for us. Hi, Dee.

Hey, Morgan. So Airbnb shares, they're down more than 4.5%. EPS coming in line with expectations. 24 cents was expected. That's what came out of the quarter. Revenue slight beat here, 2.27 billion versus 2.26 billion expected. We'll call that in line. Gross booking value up 7% year over year.

Outlook a little bit light, but mostly inline Airbnb is giving a range of 2.99 billion to 3.05. The street was expecting $3.04 billion, but here's what really matters guys. The travel trends commentary, how they're seeing things in Q2 so far, seeing some softness on the U S side on a sequential and a year-over-year basis. Believe that's driven by macro uncertainty. They say that inbound travelers coming to the US are coming down, but those Canadians

are choosing to travel to other places. Saying near-term bookings remains relatively strong, but people aren't booking as much in advance. They're waiting and seeing. That said, guys, no change to full year guidance. Also just want to note, teasing its summer release on May 13th with the tagline Airbnb will go beyond places to see. Brian Chesky, the CEO, has long said that Airbnb would expand out of just homestays. So we'll see what's coming up there. While I have you, I'm also going to bring you

cart earnings. That's Instacart. Shares are up half a percent in extended trade it was actually a miss on EPS 37 cents versus 39 expected a revenue miss also 897 million versus 898 so pretty close there guidance though and this may be what's saving the stock right now which is now up more than 5% in line to better than expected I'll continue to go through these pair of earnings and bring you more as I get it, guys. Okay, Deirdre Bosa doing double duty for us with Instacart now up 7.5%. Amgen earnings are out too,

and Angelica Peebles has those numbers. Hi, Angelica. Morgan, it's a beat on the top and bottom lines for Amgen. Adjusted earnings for share coming in at $4.90 versus the 4.30 that the street was looking for, and revenue coming in at $4.90 versus the $4.30 that the street was looking for. And revenue coming in at $8.15 billion versus $8.06 billion that they were looking for. And it's a pretty broad beat, some of the drugs that surpassed estimates, cholesterol drug rapatha, osteoporosis drug, Prolia. I do want to call out, some misses in rare disease drugs that Amgen got through

its acquisition of Horizon. A lot of those drugs coming up short, particularly Tepeza, that's a big one that we're watching. They did reaffirm their full year adjusted earnings and revenue guidance. And they do say that their guidance includes estimated impact of current tariffs, but it does not account for future potential tariffs like sector-specific tariffs. Morgan? All right, I'll take it.

Thank you. Block is dropping on earnings. Mackenzie Segalos, why? So Block reporting adjusted earnings of 56 cents a share, John, up 19% from a year ago, but that's not comparable to estimates due to a change in stock-based compensation accounting. Revenue a big miss at $5.77 billion versus the $6.2 billion expected. Gross payment volume, money moving through square and Cash App came in light at $56.8 billion, though it is a profit beat on EBITDA.

Now Cash App gross profit was a bit softer than expected. CFO Amrita Housha cited lower inflows and muted tax season spending, but says that they expect to pick up later this year as its borrow product expands nationwide with FDIC approval. Looking ahead, Block is cutting its full year gross profit guidance, citing macro uncertainty. Those shares down 12% in after hours trading.

Back to you. All right, Mackenzie, thank you. We've got Roku and Reddit earnings out as well. Julia Borson has the numbers on both Julia. Hey, hey Morgan Let's start with Roku top and bottom line results better than expected Revenue of 1.02 billion ahead of 1.01 billion estimates shares up about two and a half percent on this news Loss of 19 cents per share better than the 27 cent loss per share analysts anticipated. For the second quarter, the company guided to revenues of 1.07 billion, roughly in line with expectations, and adjusted EBITDA of 70 million, which is below the 76 million, which is the street

account estimate. The company also reaffirming its full-year adjusted EBITDA guidance. Now, as for economic uncertainty, Roku's saying,oku saying quote while terra-related impacts to our devices segment remain difficult we predict to predict we expect devices revenue and gross profit loss remain consistent with 2024 levels. Roku also announcing an acquisition is buying friendly TV a subscription streaming service with over 50 live TV channels. Now shifting gears over to Reddit. Reddit, beating on the top and bottom lines, shares up 17% in after hours trading.

Revenues of 392 million, topping estimates of 370 million, earnings of $0.13 per share far ahead of the $0.02 per share estimates. The company reporting daily active uniques, 108.1 million, slightly ahead of estimates. The company reporting daily active uniques 108.1 million, slightly ahead of estimates. And Reddit also guiding to stronger than expected second quarter revenue to a range of 410 million to 430 million ahead of the consensus estimate of 396 million. I spoke to CEO Steve Huffman who told me, quote, we're carrying momentum into Q2. This quarter is looking

solid. It's hard for anybody to predict beyond that, but we've grown in uncertainty before and we are confident that we could do it again. He also spoke to the improvement that they've seen from their ad tech investments, the value they see in Reddit answers, as well as their work on global expansion. Back over to you. Shares up 18%. Okay, Julia Borsten, thank you. Adam Chrisafouli, we just ran through a laundry list of names. I wanna get your reaction here to some of what we've heard,

whether it is Reddit and Roku or Airbnb, given some of the softness we've seen in travel trends or some of these other names as well. Yes, I mean, pretty much every major participant in the travel leisure industry has acknowledged softness in the U.S. You know, going back to March with the airlines, that were kind of the first ones out of the gate.

Then we've heard it from hotel companies, even Norwegian Cruise, and now acknowledge it this week too. So not terribly shocking that you're seeing Airbnb acknowledge some softness in the travel market. Again, that's kind of very consistent with what everyone else in the space had talked about. You know, Block's a little bit more interesting. We've heard from Visa MasterCard,

the companies that really have the best overview of product consumer spending, and they see things as so resilient, consumers are still spending, but some of these more specialized companies, such as Block, have been a little bit more mixed this earnings season, and obviously there's some disappointment on the square part of the business.

And then for Reddit, you know, I think Snap raised some concerns about some of these earning season and obviously there's some disappointment on the square part of the business. And then for Reddit, you know, I think Snap raised some concerns about some of these smaller social media names, but obviously Reddit's continuing to perform very well after Share and that's benefiting that stock. Okay, well there's more. Twilio jumping 8-9% here in overtime. The results are out. Bertha Coombs has the details.

Bertha. John, big beat on both the top and the bottom line. Twitter reporting adjusted earnings of $1.14 per share. The street had been looking for 94 cents. Revenues came in at $1.17 billion. That was well above the $1.14 billion the street was looking for. In the comms segment, revenues were $1 billion. That was up 13%, which was better than the overall revenue growth.

Kazuma Shipchandler, the CEO, saying he's encouraged by momentum to start the year. As far as the second quarter guidance, a little bit shy potentially in terms of what the street was looking for on the bottom line. The estimate is for $1.04. The company is guiding between 99 cents to $1.04. But on the top line, they're seeing $1.18 billion to $1.9 billion, and the street was looking for $1.17 billion, but as you can see, they seem to like what they saw.

Shares now up about 7 3-quarters percent. All right. Bertha, thank you, and we're about to hear a lot more about that because Tulio's CEO, Co-Chhip Chandler, is going to break down those numbers and more with us exclusively before he dials into the call with analysts.

Stephanie, I wanna go back to you. There's a number of things that we could talk about, but I wanna start with the biggest move here, which I think is Reddit. The stock had been down quite a bit, but these beats are a little bit eyebrow raising, I'd say. Yeah, well, the stock is down 45% from its highs, so expectations were really low.

But the daily active unique users was better than expected. The guide was also better than expected. People were nervous about advertising and auto exposure, which is 6% of their business, of their ad business. So there was a lot of concern headed into it against low expectations. So a good quarter, obviously better than expected revenue guide, that's a pleasant surprise.

Adam, what's your takeaway so far from this earnings season? And I say this knowing that we're Thursday into what is the busiest week of earnings season. And we've heard from most of the Mag 7 names now. We're still waiting on Apple a little bit later this hour. And then of course, Nvidia in a couple of weeks here. But what's your takeaway on what we're seeing across different industries? I think it's been a very strong earnings season, especially versus expectations earlier in the month.

Companies are performing very well. They're managing through the tariff uncertainty for the most part. You obviously have some exceptions of companies getting hit very hard, but they're pulling a variety of levers, whether it's price hikes, cost cutting, supply chain adjustments,

and you're seeing a lot of upside in Q1, but you're also seeing for the most part, companies are largely maintaining guidance or only trimming it a tiny bit. Certain industries are getting hit a lot more than others. Autos is a lot of uncertainty, but corporate America has been performing very well. Tech has definitely been the big upside standout,

not just this week with Microsoft and Meta, but really going back to the start, whether it's Netflix or SAP, some of those initial tech reports, it's been pretty healthy across the board. And that's been a big driver of the rally. So I think obviously you've had some dialing back of the tariff intensity, but Q1 earnings have been a huge driver behind the rally we've seen in the S&P. Okay, Adam and Steph, we'll see you both later in the show.

Thank you for kicking off this earnings parade with us with all the major averages finishing higher. The S&P finishing just above 5,600 in trading today, eighth straight day of gains. The countdown is on to Apple earnings. Investors will be looking for any guidance from the company on China, trade, the impact of tariffs. Our experts are standing by to break down every angle of that report.

And up next next much more on Amazon's print is that stock bounces off the overtime lows now down just about two and a half percent Get some more details from the release as well over times back into Welcome back to overtime Amazon shares were down more than five percent after their earnings report now They're down more like two and a half. Let's get back to Kate Rooney with more from the release. Kate? Hey, John. So a couple bright spots here in the release that may be taking some of the pain out of that AWS. Miss advertising revenue was a bright spot for Amazon in the quarter. It was up 19% beating street estimates at 13.9 billion. That's been a high growth, high margin side of the business. Some color here on

guidance as well. Amazon saying they expect an impact of about 10 basis points from foreign exchange rates. So that would be on the second quarter sales guidance. Operating income for the second quarter also. We did mention disappointed all the revenue guidance was in line. The North America segment sales is pretty much the e-commerce side of the business. Stronger than expected. Operating free cash flow up 15 percent and then total free cash flow actually did decrease in the 12 months but it is all about that AWS number

that was hitting the stock although it was a beat overall on the top and bottom line in the first quarter as you said shares kind of paring back some of those losses that we initially saw guys back over to you. Okay Kate Rooney thank you for more on Amazon let's bring in Maxim Group Senior Analyst, Tom Forte. He has an Outperform rating on the stock. Tom, your takeaway from what we heard, especially in terms of what I would call maybe mixed guidance here, AWS perhaps coming in a little softer

than expectations after the strong cloud results we got yesterday from Microsoft, but yet some strength in places like advertising. Yeah, so I definitely think Microsoft's strong performance there had investors wanting more from AWS. I think the important thing here is that if tariffs result in macroeconomic weakness, are we going to see a slowdown in the cloud computing business and in the advertising

business, given that's relatively high margin? I think that's the big risk for Amazon. Otherwise, they seem to be navigating tariffs well. I think their marketplace model positions them in that regard. Also look for additional details on their capex spend. If tariffs make it more expensive, are they still gonna spend 100 billion

or are they gonna spend more? But I would say good numbers, decent guidance, given the situation. Given what we heard from Meta and Microsoft yesterday on those conference calls, where both of those companies basically doubled down on capex spending as it relates to AI, is Amazon in a position to do anything but that as well now?

Absolutely not, yeah. So I highly expect them to maintain the 100 billion. All systems go on the capex spend for AI. But we'll be curious to see if tariffs result in making less efficient. Tom, after Alphabet's pretty strong quarter, Meta, Reddit, et cetera, there seems to be a story here, at least among the stronger players, on ads.

Do you think that this is a longer term story amid uncertainty where the economy companies are looking to target ads in order to move what they can or is this perhaps part of that pull forward story ahead of tariffs where these were beneficiaries but that perhaps drops off later? Yes, John I think you're hinting and I agree that it's very encouraging that the digital ad market is holding because usually first sign of macroeconomic weakness, that's where you see weakness, is in digital advertising.

It's possible that some of it might just be a sector shift, so less advertising in the auto category, more advertising in other categories that are holding up relatively well despite the tariffs, but I am very encouraged at the digital advertising results that you're seeing this resilience despite concerns about macroeconomic weakness because of the tariffs. Amazon has been fond of pointing out how much third party sellers contribute

to the e-commerce business. I imagine now with what's going on in China in particular, the tariff story is going to change that message in some way. I'm not sure in what way. Do you have an expectation? Yeah. So my expectation is that, again, the marketplace model should insulate Amazon.

But as you pointed out, with 60% of units sold third party, they are more dependent on third parties for revenue and profits within the e-commerce category than they've been historically. I do think there's a small silver lining for Amazon on the de minimis to the extent that there's less competitive pressure from Tmoo. I think that had been affecting Amazon.

They had some efforts there, but they were small. So NetNet, I think the marketplace model will insulate some of the impact of tariffs and then having a strong advertising and cloud computing business, that can keep the shares going. All right, Tom Forte, Maxim Group, thank you. Thank you. Well, now it's the final countdown to Apple results.

And we've got a great lineup of experts standing by to break down every angle of the report. We're gonna bring you the numbers and analysis after this quick break. Welcome back to Overtime, where Apple results are just moments away and back with us, Hightower Chief Investment Strategist and CNBC contributor,

Stephanie Link, Vital Knowledge Founder, Adam Chrisafulli, and now Patrick Morehead, More Insights and Strategy CEO. Welcome guys, we are in the countdown. We are in the end game now. Pat, iPhone of course is the whole ball game on the top line. But to me the question on margins is how Tim Cook

handles supply chain costs from tariffs and whatever else. How much he squeezes suppliers, whether he'll raise prices. What do you expect we'll learn? Listen, Tim Cook is the master supply chain expert in fact uh... years ago we are him and i've worked at the same company and he has a track record of being able to pull off these types of deals not only with his supply chain but also with the administration he's one of the few tech

c e o's there's been popular, regardless of who's in charge. There were some very credible reports, and I do believe that there were truckloads of iPhones, I guess not truckloads, but plain loads of iPhones that were delivered and manufactured to beat the potential tariffs that were then rolled back. But we still have to accept, though, that there are tariffs that will be in fact, albeit not out of China, at 150 percent. But he does have to figure out how to maneuver it given a likely and worst-case scenario,

and that is putting as much into Vietnam as he possibly can, but there are just limits as to how much of that can be done. Stephanie, I was positing yesterday or the day before that maybe this situation is a blessing in disguise for Apple because while they're challenged with AI and Siri and the screw-ups there to actually grow, Tim Cook and the crew are really good at managing costs.

How do you see it? I think that this quarter is going to have puts and takes, John. So I think on the positive side, I think currency is going to help them. On the second thing, on iPhones, you're going to see a one to two million pull-in on iPhones ahead of the tariffs. This is not to be confused with better than expected demand, because that's going to reverse in the second half likely. I do think that they're going to hang in there on margins.

I think they've done an amazing job over the years on that particular, both gross margins and operating margins. And of course, services is what we're watching as well. 12% growth is expected. On the negative side, AI adoption has actually been a problem for them with Siri, right? That's being delayed. So no iPhone super cycle for 16, maybe not even 17. We'll have to see. China, 20% of iPhone sales, what happens there? And then of course, as I mentioned,

the second half of this year, do you see a reversal in the pull in because of the tariff? So I think there's a lot of question marks. By the way, so expecting a 4% dividend increase, expecting 110 billion buyback, that shouldn't be a surprise. Okay. Adam, I'm gonna preface it right now. As soon as these results cross, I might be interrupting you here, but in the meantime,

what are you watching from this report? Especially given the fact that traditionally, among the big cap tech names, Apple has always been seen as very defensive. Yeah, so you know, like Stephanie said, you probably saw a pull forward of some demand, so the market quarter numbers might be a little bit artificial, and then they usually give guidance on the call. So I'm most interested in hearing, you know, the commentary that Tim Cook has around how they're shifting their supply chain, there's reporting that they're moving all the US

manufacturing to India, you know, and then what the effects that's going to be going forward are they changing? Okay we got those results. We'll be right back to you. Apple earnings around Steve Kovac has the numbers. Hi Steve. Hey there Morgan. Yeah we're looking at beats here on the top and bottom lines. Let me go over EPS first. A dollar sixty five Street wanted to see $1.63. Revenues are also a beat here, $95.36 billion. Street was looking for $94.66 billion. Revenues for iPhone also a beat, $46.84 billion. That's compared to the $45.84 billion expected. That's up about 2% for iPhone business year on year.

Services though, a slight miss despite being up nearly 12% year over year. Services though, a slight miss despite being up nearly 12% year over year, did slightly miss expectations here. We're looking at $26.65 billion compared to $26.7 billion. China revenues, a little bit of improvement here guys. We're seeing it down slightly, 2% year over year to $16 billion. Way better quarter over quarter than that minus 11 percent that we saw there. And then as far as the buyback goes, a 100 billion dollar buyback and an increase of the dividend by 4 percent to 26 cents a share. I'll note that buyback is 10 billion dollars less than it was that record a year ago. Guys, I'll send things back over

to you. Okay. Shares are down about one and a half percent right now in overtime. Adam, I just cut you off. So I'll go back to you for your initial response here. Yeah so you know the quarter looks okay but like I said I think really the key is going to be the guidance not just for the June quarter but you know how Tim Cook talks about the plans the company's making for multiple years going forward in response to tariffs, how they're moving supply chains etc. You know I'm sure they're probably re-jiggering some of the plans for the upcoming iPhone launch, maybe pulling out some new higher-end models so they can push through some price increases.

That will be one mechanism they'll use to offset some of the tariff fallout. But there's also a lot of, separate from the supply chain, there's a lot of kind of regulatory events and issues that Apple's going to be grappling with. There was a ruling today regarding the App Store. What happens with Google could have a big impact on Apple. Remember, Google and Apple are huge partners. Apple takes in a lot of money from that relationship. So there's a lot of overhangs and issues

that Apple's gonna be grappling with this calendar year. Okay, Pat, wanna get your response, especially given the fact that iPhone revenue came in a bit better than expected here, but you were also just talking about plain loads full of iPhones to get ahead of tariffs that didn't actually happen. Yeah, I think we're aligned on the call. I'd heard a million. That sounds about right to me.

And they stuffed airplanes, got them over before then. The big question is, is where are they? Are they sitting in Apple inventory? Are they sitting in channel inventory? I think we'll find, we'll see that in the balance sheet. You know, something that, you know, few of us are talking about on this call is about the future.

I mean, Apple is, you know, they bailed on EVs, they embarrassed themselves with Vision Pro, and I think AI, the restructuring AI, they push it out. What's next for the company who's going to do it? I know that Apple's looked at as a safe stock but to get themselves back into a growth posture we're gonna have to see some longer-term changes there and I Tim Cook is gonna have to at some point address those. Yeah we'll see if we get that before WWDC. Let's get back to Steve Kovac for more on these results.

A lot more, Steve. Yeah, I got a lot more for you here, John. I did catch up with Apple CEO Tim Cook on these results. And we did discuss a little bit about what you and your panelists were talking about before the results hit. Pull forward demand. There was a lot of talk about this going into these earnings. Tim Cook telling me, actually, we don't believe, quote,

there was a significant pull forward due to tariffs into the March quarter. No obvious evidence of that. Obviously, things could change later on the year, but as far as the March quarter goes, Cook telling us, did not see really any evidence of pull forward demand. And let's go over to China. Like I just told you guys earlier, quarter goes, Cook telling us, did not see really any evidence of pull forward demand.

And let's go over to China. Like I just told you guys earlier, some improvement there, still down year over year, but some improvement. Tim Cook telling me part of that was because of that national subsidy program, telling me quote, they have this national subsidy program and it's helping to some degree. You can see it in results accelerated sequentially. They were at negative 11% in the Q1 time period. We accelerated to negative 2%.

And if you look at that negative 2% and expect it a little deeper and you moved it to constant currency, we were roughly flat in constant currency. So Ford exchange had wins playing a bit there and trying to show some improvement as well. And then India, we were also just talking about India here and all the production there.

Tim Cook telling us that about half, sorry, over half of the US sales of iPhone did, were produced in India. So there's some color there. Still unclear when they can get that half up to all of the phones up to 100% as we know they're trying to do. But that's what we got.

As far as tariffs go and strategy moving forward, Cook telling us to expect more of that to come on the earnings call at 5 o'clock, guys. I'll send it back over to you. All right, so he's not giving it all away to you, but that is quite a bit. Steve Kovach, thank you. With Apple shares down about 2%.

Stephanie Link, a lot to like here, but two things to point out, along with pull forward in demand maybe not happening in the quarter, I guess that makes sense since the big tariff announcement was the beginning of April, but wearables, home, and accessories seems to have missed by about almost half a billion dollars coming in

at 7.52 versus 7.95 expected, and services was just in line. You make anything of that? 100%. I don't think this is something to get excited about at all. It's trading at 29 times earnings. That is historically the average of what it trades at. So it's not at a discount.

And you had flat year over year iPhone sales. Services that missed under 12%, maybe it's 11 1 1 2. It's not a big miss, but it's a miss. And that's a big driver of margins. China down 2%. They're still losing share in China. And India, they make 35 million phones in India, 12 million of which they're going to keep for Indians.

So how do they ramp that up? That's going to take a long time. India doesn't have the infrastructure to get to 100%. So to me, if I'm choosing between Amazon and Apple, Amazon is a clear winner in my mind and yeah tariffs are going to hurt them in the short term but the demand is still very very strong, the growth is still very very strong and the valuation is at a discount to its historical average. Pat the comments on China as well as the comments on trade and supply chain to the extent they were just given to Steve Kovac. I'm impressed.

I mean, 50% of US iPhones coming out of India, I mistakenly said Vietnam. But I'm quite impressed. That's an absolute huge number. And to be able to scale that, you're right. India is different from China at right now, getting roads, getting electricity, getting water, getting lines set up, and more importantly, getting a complete supply chain set up around there

is important. And one thing we can't forget is they aren't doing full sub-assembly in India. This is essentially a final assembly. And if Apple, the administration seems to change his mind randomly weekly daily on this uh... there could be new rules for what passes as final assembly uh... and that's a a conversion rule

and i'm gonna be interested in in researching exactly what is there uh... the other side of the mouth. But net-net, I'm impressed with the Indian number given, I think it was eight years ago, Tim Cook said it was impossible to build an iPhone outside of China. Okay. Patrick Morehead, Adam Chrisafouli, Stephanie Link, thank you all for going on this adventure with us here for earnings. We've got Apple shares down about 2% right now.

We're gonna have much more reaction to Apple's results and the rest of today's Overtime earnings report straight ahead. Including after the break, don't miss our exclusive interview with Twilio CEO with that stock up more than 10% ahead of the call with analysts. Overtime will be right back. Welcome back to Overtime.

Look at Twilio, those shares moving higher by about 10% after posting a beat on the top and bottom lines moments ago. Joining us now, exclusively before the earnings call, Twilio CEO, Kozama Shipp Chandler. Ko, good to see you. So how did you see customers responding to this tariff uncertainty,

the need to stay close to their customers during this quarter and perhaps beyond, and how did that affect demand for your software? Yeah, I think by and large, like despite some of the uncertainty, I think the thing that remains true, especially during a period like this, is that customers want certain outcomes,

and I think that's evidenced through return on investment. And I think right now, just being at such a critical inflection point with communications, data, and AI, we have an opportunity to deliver that for them. And so I wouldn't say we're a hundred percent immune to whatever the broader macroeconomic activity has been or turns out to be,

but we feel really good about our quarter. We delivered another kind of accelerating revenue growth quarter, good cash flow, and really strong profitability in a tough environment. Now, tell me about this EPS guide. 99 cents to $1.04 adjusted. The street was looking for $1.04, so the midpoint is below the expectation. What's happening with costs? I think costs are in line more or less I mean I think you know we put out a balanced

framework over the next several years and we feel really really good about that I think that we've demonstrated over long periods of time our ability to do deliver continued operating leverage. I think in any given quarter we've always got like some puts and takes I think of this particular quarter it just so happens to be timing around, you know, merit and our big customer conference. But otherwise I have no concerns whatsoever really from a cost perspective and our headcount remains flat and we're going to continue to do the smart things there to manage our cost position and overall OPEX.

Cosima, there's a lot of focus right now, especially amid all the hyperscaler earnings on the secular growth story that is the AI infrastructure buildout. What inning do you put us in and what are you seeing on the ground in real time? Oh man, I think we're still probably at batting practice at some level. I mean, I think we're seeing a lot of activity

with respect to AI. I think we're seeing a lot of customers that are building on our platform. But I think in terms of some of the real productivity benefits that are being delivered, certainly to customers, I think it's very, very early. And so I would say a lot of that benefit is on the come. I think within our own business, we've deployed AI pretty successfully, especially as it relates to support and inside sales. And we've seen a big, big productivity benefit

as a result of that. In particular on support, we deflect 85% of our tickets instead of them being handled by a person. And so that's pretty attractive, but I think that there's a lot more to come there. Cole, you get some interesting color around Investor Day, around startup traction in AI. Any updates there on uptake of AI related tools?

Yeah, it's been awesome, honestly. We just released another couple of products over the last quarter. I think one in particular that we're very excited about is our Conversation Relay product. As you know, there are thousands of startups that are starting with voice AI capabilities and our conversation relay product makes it really, really simple for you to be able to deploy voice AI agents. That seems to be a really smart deployment of technology right now, just given that the way in which we're so used to interacting is using the human voice. And I think the more natural, the more interactive

that we can make that for customers, and frankly, the more simple that we can make it for them to deploy, I just think that that makes us a really attractive partner to so many of our customers. And so, yeah, we're seeing great traction there, but again, very, very early in terms of the AI story. Well, it's getting late in the afternoon.

I know you got an analyst call in about 15 minutes. So appreciate you joining us before that, Koship Chandler, the CEO of Twilio. Thanks, guys. Up next, some of the under the radar earnings movers you need to know about, plus more analyst reaction to Apple's results ahead of that call. And Nvidia just revealing CEO Jensen Huang's compensation

coming in at $49.9 million for 2025. That's versus 34.1 million for 2024. We'll be right back. Welcome back. Let's hit some more earnings movers here in overtime. Atlassian shares, those are tanking despite a beat on earnings and revenue. Fourth quarter revenue guidance was slightly below estimates.

Billings missed expectations. You can see those shares are down more than 15% right now. Duolingo though, that's higher after beating earnings and revenue estimates, giving solid guidance. Those shares are up almost 9%. Now outside of earnings, Delta is higher as well. After announcing a $1 billion stock buyback, you can see those shares are up about half a percent, John.

All right, well much more on Apple's earnings straight ahead when an analyst with a buy rating tells us what he wants to hear from CEO Tim Cook and the company on the call in just a few minutes. Be right back. Welcome back to Overtime, we're just minutes away from Apple's earnings call with investors, but let's bring in Angelo Zeno,

senior analyst at CFRA Research. Angelo, it's great to have you on. We have better than expected iPhone revenue. We had a boosted dividend. We had a hundred billion dollar stock buyback authorization. But we did get

some services softness. Your thoughts on the print and what are you watching for the call? Yeah, I thought the print was pretty solid. There's not much you can really complain about i mean the services you're right it was a tad shy for the most part it was in line they killed top lines slightly above expectations i think that we'll be saw some strife was actually in the americas grew back eight

percent year-over-year and that was a strong risk growth rate we saw on the america's and since the september quarter of twenty twenty two but it also went up against some easy comps on that side of things. To me, I think the biggest head scratcher, at least from the press release, was actually the buyback. You kind of look at the company ever since they started doing buybacks back in 2012. Typically, they either increase versus the prior year or kind of hold it in line. This take a $10 billion step back versus the prior year, I think is really kind of un-Apple-like.

So, it'll be interesting to kind of see if they talk anything about greater investments or what have you on the call. But definitely going to want to hear about that. Angela, how much does channel inventory matter? Last quarter, there was a drawdown in China inventory in the channel there, and they attributed some of the shortfall to that. And then we've had all these tariff issues since, and talk about shipping handsets from here to there.

It makes me wonder about inventory impact and how much muddiness there might be in just these top line numbers. Yeah, I think you're right. I think it'll be interesting to kind of see what they have to say about the channel inventory. And, you know, clearly there's probably some stockpiling going on here in the U.S. You would think that would be the case to an extent.

I mean, there's essentially no tariffs in place right now for Apple outside of that 20% Fentanyl-related tariff from China. And of course, we've got the pending 232 semiconductor investigation that's ongoing, and they're probably, you know, they're going to be thrown into that mix. So you know, it's going to be interesting to kind of see how it all plays out. But yeah, it's going to be a little bit messy here over the next couple of months. Angelo, I think we're going to have to wrap it up, but I just wanted to give you a hat tip because you were on this show back on April 11th and you said, I think you buy Apple here because I think we're going to see some tariff exemptions.

And then a couple hours later, we got them. So just wanted to wanted to shout that out. Yeah. Thank you. All right, Angela Zeno. Thank you. Well, up next, we're going to get you set up for the wave of analysts calls beginning at the top of the hour.

We'll be right back. What an hour it has been. We've just had a whirlwind of earnings, but taking a look at Apple and Amazon, both of these names are under pressure right now here in overtime as we do await the beginning of conference calls for both of those mega cap tech names. Amazon down 4%.

We had beats on top and bottom lines for both companies, but it was really getting down to some of the other metrics and some aspects of guidance for both of these names that are really putting them under pressure. The commentary on both calls is going to matter quite a bit tonight. It sure will. And another storyline emerging more in overtime tonight, advertising. Even though Amazon is down, its results overall on the income side, a bit disappointing. Advertising was up 19%, that was better than expected.

And then Reddit is up about 17% here in overtime on results, and of course it's ad driven, better than expected. And that comes after Meta had those strong results, and that's all about the ad market. Yeah, Reddit is definitely the winner here in overtime, it's up almost 18%. Tomorrow, though, it is all about the jobs report

in the morning. We've seen that softening in soft data. We have not seen it in hard data, and tomorrow's jobs report is gonna be the first confirmation on whether you actually start to see it there as well or not. The labor market, of course, in focus ahead of the Fed meeting next week.

People have been feeling bad, but looking good on the numbers, and of course, it is better to look good than to feel good. Yeah, and you are seeing the winners and losers in the consumer space in this earnings season. That's gonna do it for us here at Overtime.