Closing Bell - Earnings Avalanche: Amazon & Apple 10/30/25

Episode Date: October 30, 2025

A huge night for markets as Amazon, Apple, Reddit, and Coinbase all report earnings. Barbara Doran of BD8 Capital and Kevin Gordon of Charles Schwab discuss the broader market reaction, while Rohit Kulkarni of Roth MKM breaks down Amazon’s results. Dan Ives of Wedbush and Patrick Moorhead of Moor Insights analyze Apple. David Sewell, CEO of Solstice Advanced Materials, joins to discuss the debut of the Honeywell spinoff.  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

That bell marks the and a regulation. Bitwise asset management winning the Pilsenbell at the New York Stock Exchange. Navandu, in the honors at the NASDAQ, and stocks are lower across the board. The Dow with only a small loss gains in financials helping there. The S&P down about a percent, and the NASDAQ losing a little more than one and a half percent. That's after results from three tech giants last night here on overtime. Google Pan Alphabet soaring to an all-time high. Microsoft down nearly 3 percent.

But meta, just getting crushed down a little more than 11%. That makes it its worst day in three years. We're going to look at why the street is treating these three so differently. And we've got two fresh Mag 7 reports this hour from the two worst performers in that group so far this year. Amazon results crossing any minute. We're going to get Apple at 430 Eastern, and we've got a great lineup of guests to react. Meanwhile, the yield on the 10-year note creeping even higher today after yesterday's Fed meeting and doubts about a December cut, Gold bouncing back today after $4,000, above $4,000 an ounce.

And one more stock we are watching today's Solstice Advanced Materials. That's a Honeywell spin-off, trading for the first time as a public company, down about a percent. Was that, is Amazon out? Amazon is out. Wow, we're already rolling. Well, the CEO of Solstice is going to join us a little later this hour. That is the scorecard on Wall Street, but winter's day late. Welcome to closing about overtime.

I am John Ford. Morgan Brennan is off today. Let's get straight to Christina Parts of Nevelas because we've got so many big earnings movers to talk about as we go through that Amazon report. Christina. I know. So I'll speak fast because I know they want me to get through all these names that are beyond hyperscalers in AI. We actually have a bunch of other earnings movers. Chipotle's shares, for example, plunging 18% after the burrito chain reported declining store traffic slashed its sales forecast.

The company is struggling to hold on to customers in that key 25-year-old demographics, studying macro pressures and student loan repayments. C.H. Robertson, leading the S&P 500 today after beating Q3 expectations and also authorizing $2 billion for share bybacks. The shipping giant posted its best day since 2007 shares closed almost 20% higher. Cardinal Health hitting its best day since 2004 after beating earnings and raising full-year guidance. Eli Lilly climbing about 3% almost 4% after raising its full-year outlook thanks in part to a surge in demand for weight-loss drugs like Manjaro and Zepbound. And lastly, Roblox. That company's shares plunged about 15% today.

Despite beating on bookings, the gaming company warned increased infrastructure and safety investments could really pressure margins. So that's why shares closed lower. There you go. Fast. All right. Thank you, Christina. And Amazon is up. Let's find out why the earnings are out. McKenzie Seagalas has the numbers.

McKenzie. Hey there, John. shares up up 10% right now. After a beat on the top and bottom line, we're looking at $1.95 for EP. in the third quarter versus $1.57 expected for revenue, another beat of $180.177 billion versus $177.8 billion expected. But AWS, it's cloud business, its profitability engine, that's where everybody was looking. We're looking at a beat there of $33 billion versus $32.42 billion expected. What's really key there, John, is that it's a growth figure of 20% year over year.

That's higher than even the whisper estimates from the street, which were in the range of 18 and a half to 19%. Those shares, 10% higher. Investors are liking what they're seeing at the print. I'll get you more. I'm digging into this now. All right, McKenzie Segalos, that's a good amount. That stock now up more than 10% for Amazon at the moment. Let's bring in Barbara Durand of BD8 Capital Partners and Kevin Gordon,

head of macro research at Schwab Center for Financial Research. Guys, welcome. Kevin, let's put this in the context of Amazon. We saw some mixed reaction to the results from the big names yesterday. This is a big reaction on Amazon, which disappointed a quarter ago with that 17% AWS growth. I'm looking here, and the guide for operating income for Q4 is also between $21 and $26 billion. That means the low end of this range is where they were a year ago. I imagine the street's got to be happy about that, too.

Yeah, I think, you know, hitting that trifect of guidance, but also beating on the top and the bottom line for this earning season has been really, crucial, and I think that's what you're starting to see in a lot of the more higher profile earnings reports that we're getting this week. But what we've seen in market performance and the reaction of the market, for companies that are just beating on earnings, it's not good enough. It's still a positive spread where they're outperforming the SEP, you know, on average when they do that, but when you throw in the sales piece and then you also throw in to guide, throw in guidance to that mix, if they're raising, if they're beating on all three, that's where you're tending to see a lot of the strength. And I think that's because, you know,

coming into this earning season, the bar was actually getting raised a little. bit higher. So it was a little bit of a different mix relative to what you had seen in the past few quarters where the bar was relatively low. So it was easy, you know, estimates had gotten cut heading into the season and then it was relatively easy for companies to jump over that. A little bit of a flip dynamic this time. But for some of the larger companies, especially within the Mag 7, a lot more focus on what the spend has been. I would argue that was probably more of a focus last night that it is tonight. But still, what are companies in these larger mega caps that are making up almost 40% of the S&P, how much are they actually expecting to

But in terms of return on some of these investments, that's coming into focus for them in particular. Barb Garan, how does this reshape, if it does, these Amazon results, stock still up about 10% initially in overtime on these results and the AWS performance? Does it reshape the narrative about Amazon and AWS, the biggest cloud provider and concerns about Google and Microsoft growing faster? Now, granted, this pop in Amazon is off a relatively depressed base since this was the worst performance. former in the MAG 7 so far this year. Yeah, no, it's only up about 3%. And the reason was the last quarter when AWS disappointed because they've had leading market share,

they started weight earlier than everyone else. And so the comparison, and we had Google yesterday, we had as your, and the numbers were pretty darn good. They were over 30% for both. So this was the key metric for Amazon, even though obviously their e-commerce business is strong. You know, they've got advertising, it's still scaling up for them.

but this was really the critical thing that investors were watching. So this is really terrific news. And can't wait to see what else, where else they are firing on all their cylinders. But I think advertising is going to be a powerful one because they've been really applying the AI internally. We're going to look for that. Amazon up 10, but Roku is down about 11. Its earnings are out. Let's get to Julia Borsden for the details.

Julia. Hey, John, we see Roku shares plummeting. This is despite earnings beating 16 cents per share versus the 9 cent per share. analyst consensus EPS. Revenues of $1.21 billion were right in line with estimates. But if you want to look at the cause or one of the causes of the drop in the stock, the company's streaming hours, $36.5 billion. That's over a billion short of analyst estimates. The company is saying we are confident in our ability to deliver double digit platform revenue growth while increasing operating margins in 2026 and beyond. The company did a guide to Q4

revenues of $1.35 billion. a hair ahead of the $1.32 billion estimated and also guiding to Q4, Justin Ibedah of $145 million ahead of $131 million estimated. But it looks like there are those concerns about the streaming hours coming in short. That's really weighing on the stock here, John. All right. Yeah, that stock bouncing off those initial lows, but still down more than 7.5%. I think we got more on Amazon from McKenzie Segalos, including the guidance.

McKenzie? Let's start there on guidance. So with Q4 revenue, it's in the range of $206 billion to $213 billion, putting that mid-range at $209.5 versus a $208.1-2 billion expected. And, John, this would be their first $200 billion revenue quarter coming just five years after across the $100 billion dollar threshold. Moving on to Q4 operating income. It's also a little light there, actually, in the range of $21 to $26 billion. So that's $23.5 billion at the midpoint versus $23.8 billion expected. I want to give you a sense of how its e-commerce business is doing.

So it's online store revenue. This really is showing strength. It's beating $67.14 billion versus $66.94 billion expected. That's 8% year-over-year growth. North America revenue, that's really giving you a sense of the health of its domestic market. Also beating at $106.3 billion. And finally, that advertising services revenue category, it's actually one of its fastest growing businesses.

That is a beat at 17.7 billion versus 17.34 billion expected, but it's a 22% growth year over year that's flat from last quarter. The number, though, John, that we're still waiting for is that CAPX guidance might be coming during the call, but share is still up around 9.5%. Back to you. All right, Mack, thank you. Kevin, the advertising number that we were talking about earlier looks pretty healthy for them hanging in there above 20% growth. Matt Garman earlier this year telling me that they're trying to grow responsibly. And last quarter, investors were not excited about what responsible looked like. Does the attention shift perhaps a bit more to the sustained profitability here, especially given that with the e-commerce business and talk about whether the consumer is healthy or not, they seem to be hanging in there quite well?

Yeah, I think for any company, especially in that space, whether you want to think about it as tech or tech adjacent, because consumer discretionary, at least with Amazon and Tesla, they get sort of woven in with the broader tech space. But anything regarding the focus, the sharp focus on CAPEX, I mean, clearly that's been the story so far this year. That's where, you know, this narrower base of U.S. growth that we have and the driver of growth, it's clearly been confined to that. And I think that's why CapEx has been so much under the lens, you know, so far this earning season. So to your point about what is the stability in the report that McKenzie was just talking about, what are the stable growers for companies and revenue? you know, what's that revenue generator, that's not going to be maybe as cyclical or as in focus as

CAPEX because you almost think of it as a double-edged sword a little bit, where if they continue to raise their estimate for what CAPEX is going to look like, there are concerns, and we've seen a lot of these blips in the market and corrections over the past couple of years, driven by some of the concerns about that upping of the number of the forecast for CAPEX. But on the flip side, if they do start to pull back a little bit, there's maybe a little bit of a concern of what do they know that we don't or what do they see in terms of some of the concern about that spending. So that's why I think to the point around what is the stability in terms of revenue generation and overall profit margin generation, I think that becomes more of a focus for

earnings. Sure. And Barb, what are the most important parts to listen for on the call, especially given this as a company that earlier this week announced, what was it, 14,000, 15,000 layoffs in the offing and the need to drive efficiency in the era of AI? Yeah, well, I think the focus remains still, on AWS, their guidance going forward, and also advertise, because these are the higher margin businesses. Also on e-commerce, because coming into this, there was a question about tariffs. We all know about the de minimis exemption that went away, how's that affected? And coming into this, they said, they're not seeing an impact on demand. They're not seeing an impact on pricing. And we'd like to hear more about that, particularly as we head into the holiday

shopping season, and we know what's happening to the prices of apparel and other things. We also want to hear about grocery because that's a big push they're making. And they are really really expanding their distribution, their ability to deliver the same day, to deliver to the rural network out there. So they have a lot going on. So we'll see what that means free cash flow should be going up, margins should be going up. So the guidance and discussion of all these different businesses is going to be quite telling. All right. Barb, Kevin, thank you. Nice to see you. Now, Reddit earnings are out as well. Let's get to Julia Borsden with those results, Julie.

Reddit beating on the top and bottom lines, earnings of 80 cents per share, far ahead of expectations of 51 cents per share, revenues of $585 million ahead of estimates of $546 million. The company also guiding to Q4 revenue and EBITDA in ranges ahead of analyst expectations. I just spoke with CEO Steve Huffman, who told me that Reddit's ad business continues to outpace its peers with 74% year-over-year growth and 75% growth in total advertiser account. He said AI is helping across the board to make better recommendations and do more efficient in moderation. And when it comes to licensing to AI companies, Huffman said Reddit can be a big AI winner without all the typical AI costs. Now, John, pivoting away from Reddit, shares down

about 3%. Now, I just want to hit some news on Netflix. Netflix just announcing a 10-for-one stock split that will be affected through an amendment to the company's certificate of incorporation, and that is set to be as of the close of trading on Monday, November 3rd. 10th. We see Netflix shares up about 2.5% on this news. Back over to you, John. All right. So done. Thank you, Julia Borson. Well, don't miss Jim Kramer's exclusive interview with Reddit CEO. That's coming up at 6 p.m. on Mad Money. And now coming up on overtime, more reaction to Amazon's results as that stock continues to stay higher by almost 9% here in overtime. Thanks in Strong Park to growth in AWS. Overtimes back in two.

Welcome back to overtime. Let's get another check on Amazon. Those shares still surging up almost 9% after a beat on the top and bottom lines. Amazon Web Services, the cloud unit for Q3. Revenue jumped 20%. Joining me now is Rohit Kalkarni from Roth, MKM. Roheed, $33 billion here in AWS revenue. And, you know, operating income for AWS looking pretty solid, considering the layoffs that they're planning as well. Is this what the street is excited about here?

Yeah, I think the magic number is 20% here on your growth. That's the fastest AWS growth we have seen in several quarters. And we expected AWS to accelerate when we heard what we heard from Google, what we heard from Microsoft with all the cloud and AI cloud trends. And so the bogey was high. And I feel AWS jumped over a higher bogey. And that's That's why the stock is up and should stay up into the market tomorrow. What more do you need to hear? Do you think investors need to hear for this to be more than a one-day pop, you know, on the backs of those who were underestimating perhaps AWS?

What is a narrative shift going to have to consist of if the stock is going to continue to climb from here? I think it's about the combination of CAPEX and their leading indicator. they'll probably talk about both CAPEX and performance obligations. AWS has reported RPO, the leading indicator in cloud growth, accelerating over the last few quarters. How fast that's growing is something that I would keep an eye on on the call. The wider the gap between the revenue growth and RPO growth, this quarter greater, more bullish people will be.

And second is obviously CAPX. They are at about $120 billion in training 12-month CAPEX and how high that goes. Next year, Street is around $127, $128 billion. That number already feels a bit too conservative. How high that CAPEX number are they willing to drive? Clearly it's going to be higher, whether they give any indicators, may put a damper on the stock near term. But again, they are the leading cloud company and I think accelerating growth is probably

putting a lot of kind of bearish narrative to rest. Now, we're in a holiday quarter, and we have that guidance. If you had told me 10 years ago, it would be, you know, 18, 19 minutes into an Amazon report looking ahead to Q4, and we wouldn't have talked really about retail yet. I'd have gone, huh? So how much does retail matter here, the amount of discounting and shipping costs that Amazon's going to have to eat to drive the top line growth there in the season? I think during Q4, to some extent, they tend to give a wider guidance for operating income that is expected, given the wide range of outcomes, typically they see from a retail perspective.

Having said that, I think retail is in this kind of a long-term shift of profitable growth. We started that at some point in 24 and that kind of continuous shift in control. investment and ongoing improvement and profitability driven by advertising and retail. That has just started. So we like profitable growth in retail and plus accelerating growth in AWS. How do you read the advertising growth, especially in this environment where targeting and organizations with data seem to be doing better? And I'm thinking about both meta's results and Alphabet's results in the advertising category

yesterday. How does that position Amazon heading into this holiday season versus its competitors? I think Amazon, in my opinion, is redoing their complete ad stack in a way that about a couple years back they were only focused on the bottom of funnel converting the user who's trying to buy on Amazon, showing them the right ads of the right products at the right time, and hoping that they would buy more of that product. Now with Prime Video, with Amazon DSP, and a lot of partnerships with companies like Pinterest, Amazon Advertising is a much more bigger, complete solution where brands who don't sell on Amazon,

think of car manufacturers, think of insurance companies, they consider Amazon as an ad partner because you have Prime Video and you have various different kind of, one of the richest cohort of Internet consumers looking at your product right now. So I feel they're cracking the problem of advertising in a way that perhaps even Google, and Facebook haven't, and they have the data and the AIT wins to do even more.

Well, listen for more on the call. Rohit Kalkarni from Roth, MKM. Thank you. While the countdown is on to Apple earnings, we're going to bring you those numbers right at 4.30, less than 10 minutes away, and we've got a great panel to dig into those results. Overtime, we'll be right back. Welcome back to Overtime. It was a down day for the market's overall.

loss for the Dow, 1% drop for the S&P 500. But the NASDAQ, it's losing more than 1.5%. But things are already looking up for tomorrow, especially on the NASDAQ. Amazon up big here in overtime, almost 10% at the moment. Earnings and revenue beating. Its range and the guidance is right in line with Wall Street estimates, but strong growth from AWS, 20% boosting results there. Netflix, meanwhile, announcing a 10-4-1 stock split. Stock closing today at nearly 1,100 bucks a share. That split goes into effect after the close of trading on November 14th, stock up slightly in overtime on that news. And Western Digital, the third best performer in the S&P 500 so far this year, adding to its gains today, beating on earnings and revenue, guidance-topping

estimates, and raising its quarterly dividend. Coinbase reporting earnings of $1.50 a share, 40 cents better than the estimate. Small beat on revenue as well. A quarter of trading volume was in Bitcoin, but close behind that was Ethereum at 22%. And we are just minutes away from Apple's results. We're going to bring you those after this quick break. Welcome back. We are moments away from Apple reporting Q4 results. iPhone 17 demand services, China, potential AI strategy, all of that in focus.

Let's bring in Patrick Moorhead for more insights. strategy. Dan Oz from Wed Bush. Dan, people are excited about these Amazon results. It's up close to 10% right now in overtime. It's almost like Apple, the less they talk about AI. The more it's about the core business, that's better for them right now, no? Yeah. I think it's a one-two punch. I mean, if you look at iPhone 17, it's going to be better than expected. China now looks like that's actually going to be, you know, a talent. And that was a headwin. But this is all the drum roll to what's going to be, 2006, the year for AI. when it comes to Apple, especially with what I believe what's going to be Google and Gemini as the partner. And look, they will be in the AI party, but first show a stabilization, improvement in the business. And I think this is going to be more, get the popcorn out.

You're starting what's going to be a very strong year for Cook and Cupertino. It starts tonight. Patrick, is there any damage that Apple has really suffered? And I'm not talking just the stock. I'm talking strategy-wise over the past year because of that Apple intelligence Siri mix. miss or have they shown that they're still strong even without it?

So they definitely took a hit early on, and that's why their stock was so depressed when you had other AI names crushing it all over the place, specifically in infrastructure. But quite frankly, if they've stuck to their knitting and cranked out some very good phones, iPhone 17 is showing strength in the U.S. and in China. It looks like an absolute. winner, and even on the backdrop of, you know, Vision Pro being, quite frankly, a failure, iPad, really going after their placement cycle, and Max are even doing pretty well, particularly on the back of the low-priced M-1s. Yeah. And I would ask you another question, Dan Ives, but I think we're probably going to get those Apple results like any second. And I just have to interrupt you

right as you were starting to speak. This is a stock that's held in their market cap rise. right around $4 trillion. So we're about to get those results any minute. It's moving. Do we have them yet? Yes? No, we do. Steve Kovac.

What do the Apple numbers look like? Yeah, John, we got beats on the top and bottom lines here. Let me go through. There's a lot to unpack here as we see the stock down about 3% on first blush. EPS was a beat, $1.85 compared to $1.77 expected. Revenue, a small beat here, $102.47 billion. wanted to see 102.24. Now, iPhone revenues, it was a miss. That might be why we're seeing some negative reaction here, but sales were still up 6% year on year. They came in at 49.03 billion. Street was

looking for a little over 50 billion. Now, services, this is, of course, the big growth engine for Apple. It was up 15% year on year to 28.75 billion. That's a slight beat here. Street wanted to see 28.17 billion. And by the way, this is the end of the fiscal year. This is the first time the services business booked over $100 billion in a year. China sales, they were down about three and a half percent. However, we did get some guidance this time ahead of the earnings call. I was just back there in Apple Park talking to Tim Cook about this. He was literally beaming about this guidance. December quarter revenue, they are saying it's going to be up 10 to 12% year on year.

And iPhone revenue for the December quarter, they're now predicting up double digits year on year and saying this is going to be the best ever sales for the iPhone in the December quarter. So really strong guidance here, despite maybe little pockets of weakness in the September quarter results. And then as far as some other data here,

I did talk to Tim Cook about those results and talking about the demand for the iPhone. I know Dan I was just talking about this. He even said there was demand for the iPhone 16 at the tail end of that life cycle. Here's what he said. On the 16 and 17 for Q4, several models were supply constrained and currently were supply constrained on several models of the iPhone 17. That is, again, why we're seeing such strength there in the guidance numbers that they

gave us. As far as China, Tim Cook telling me, quote, we expect China to return to growth this quarter because of the reception of the iPhone there or the iPhone 17 family. And then, of course, we had to catch up on artificial intelligence. Tim Cook telling us that big AI update to Siri is still on track to launch next year. And also, we talked a little bit about integrating some other AI models in there. There have been so many talks about whether that's Google or what have you. He told us, quote, in terms of the integration, we've integrated with chat GPT and our intention is to integrate with more people over time.

No specific partnership to announce today, but you can think of it as more coming. So a lot to unpack. They're really strong guidance despite some disappointment there, at least from the streets perspective in the iPhone. But still, iPhone sales up 6% and trending towards the best December quarter ever for iPhone, John. Well, that's what really matters, isn't it?

Steve Kovac, quick question here. Do you say anything, Tim Cook, specifically about the iPhone air and those reports that it was particularly popular in China? We didn't talk about the popularity necessarily, though, but I did ask him a little bit about that delay. You might remember, John, the iPhone Air couldn't launch on day one because of some regulatory issues around that SIM card. He said he expects all those sales that they would have missed in the September quarter

just to be pulled forward into this quarter. And again, that's kind of why he reiterated that the strength of the iPhone 17 family is why they expect to see growth in China this quarter. quarter. All right, Steve, stick around. Dan Ives, the stock acting like it wants to come off these lows in overtime was down as much as 3% now, you know, maybe about one and a half. How big a deal is that projection, that confidence? It sounds like we're hearing from Tim Cook about the holiday quarter in the iPhone. This stock's going to be green. I mean, ultimately, if you look at that guidance, what you're seeing in China, remember this, there was only one

week of iPhone 17 in the quarter. Everyone's focused on December, and that's very robust in in terms of what we're seeing on iPhone demand specifically out of China. And then you look at what I believe services, you know, massive double-digit growth. Look, go back to the last six, nine months, company back against the wall. Now you have this number. And then look, what I believe, everyone's playing for AI. You look at Amazon, look at the hypers, you see what's happening on authentication. And we see on Orbs, you know, I think you also see on Crowdstrike and some of these cybersecurity names.

Apple's going to get into the AI party. and that, I believe, is worth $75 to $100 a share. If you're an investor right now, I think it's a pound-table moment for the stock. Pat Morehead, Steve Kovac, reporting there that Tim Cook says Apple Intelligence is on track for them to deliver as they promised next year. You combine that with the holiday season

that they're projecting for the iPhone. How does this set Apple up, do you think? So, John, it's really going to depend on the installed base that can't run Apple intelligence. And as we progress, every slip of Apple intelligence, more of these iPhones can support it. A year ago, had we been in the same place, I would have said it would make a, I think I was talking along with Dan Ives about a super cycle. And it just didn't happen. So I don't think the AI bump will be as big as everybody will expect, primarily based on the reason that there's a much larger installed base of Apple intelligence, compliance, or enough performance in memory to run this.

But hats off on the services. It's over 50% of iPhone. I think that's a great accomplishment. So, Dan, is this in a way a pull forward because Apple's getting these 1617 sales now versus, you know, AI not being the thing to Is that a bad thing? Is there a way, given the growth in services, that it turns into a good thing? How should investors frame that? Yeah, I think Patrick made some great points as he always does. Look, I think maybe there's a little bit of a pull forward, but it all comes down to, like, Google, once they want that DOJ suit, now it clears the path for what's going to be,

I believe, a massive Google Gemini partnership on AI, and that will be ultimately when you look at the next one to two cycles. The fact that iPhone 17 is holding up so strong and a surprise where I believe it's going to be in China in the December quarter, you start to look at numbers. There is a lot more that could go right here than wrong. And I think that's why this continues to be. You could have a $350 stock. You could have a $400 stock if they get AI right. If you're wrong here or there, I think minimal downside.

That's why, in my opinion, it's one of the top large cap names to own here, along with some of the other big tech names. Pat Morehead, beyond iPhone. if we're looking at Mac and a possible halo effect from some of this phone buying. I mean, it does seem that it would help if consumers, if end users, have multiple modern Apple chips at their disposal to run whatever it is that the company's offering. Where else should investors look for potential upside, if not driving revenue like iPhone, at least driving EPS upside? Yeah. So this isn't an area that investors have looked at closely, but I think we should look to Mac, right? There's a lot of my channel checks that indicate that Apple will be bringing in a much lower priced back for some of the countries that they're under-indexed in, like China and like India. And this could drive some serious revenue and just the way that they do their models and their engineering, very profitable. So I think that is a much quicker turn than, let's say, waiting another five, ten years for Vision Pro to become something even bigger. And I wouldn't be surprised if we did see Apple make a play for more content companies to boost that services revenue.

There were some questions around how they would do in content, but I think the jury has come back and said, they're awesome at this. and they've played their hand very well. Steve Kovac, thank you for sticking around. Dan, I've said Apple is going to be green and, you know, Sven Gali-like. It is green already. You mentioned China and Tim Cook's comments. That had been an area that seemed like a bit of an albatross around Apple's neck, but we got at least the beginnings of a trade deal between the U.S. and China today

and Tim Cook making some bold assertions there. How much, Steve, do you expect to hear Tim Cook talk? about that on the call. Where, in your view, does that factor into Q4? Yeah, that is going to be a big thing on the call. So while we did get guidance, we still don't know what the tariff impact was for the September quarter. We'll get that on the call. They had estimated a bit over a billion dollars. So we'll see where that actually fell in. And then, yes, some guidance and towards the impact that they're expecting for the December quarter, presumably it would be higher just because it's a higher volume and a bigger quarter.

I did want to go back to something that Patrick and Dan were talking about, though, about the super cycle and whether this is AI driven. One of the questions I asked Cook about the 17th cycle was, you know, what's different this time? What drove, what do you see the momentum drivers as? And he did mention Apple intelligence as one of them because to their earlier point, you do need one of those newer devices in order to do this. So if the Siri upgrade does live up to the expectations and it does finally play out the way Apple is promised, we could see some more positive momentum behind there. But he also did credit things like design and new form factors and things like that as also behind this as well, guys. I already kind of forgot what it was supposed to do. Steve, thank you. Patrick, thank you as well.

Dan, stick with me for a bit. Up next, we're going to dive deeper into these results from Reddit and Roku, what to expect from me. management on those calls that begin at the top of the hour. Overtime, we'll be right back. Reddit and Roku moving in opposite directions in overtime. Let's get back to Julia Borsden. Julia? Yeah, Roku's shares are off their post-market lows, but they're still down about 6%.

On the company's streaming hours falling short of expectations, 36.5 billion rather than the 37.6 billion streaming hours that analysts had anticipated in the quarter. Reddits, excuse me, Roku's revenue was in line with expectations while earnings of 16 cents for share were seven cents ahead of consensus. That is the company's first quarter with positive operating income since 2021. CEO Anthony Wood saying, looking ahead, quote, we are confident in our ability to deliver double digit platform revenue growth while increasing operating margins in 2026 and beyond. Meanwhile, Reddit shares are higher on a top and bottom line beat. Shares now up about 1%. The company guiding to fourth quarter,

Border revenue and EBITDA, both in ranges ahead of the analyst consensus. I spoke to CEO Steve Huffman, who said Reddit is a rare company benefiting from AI without the cost some other tech giants are bearing, saying the company is demonstrating the ability to achieve high margins and cash flow without huge capital investment. Back over to you, John. All right, Julia, thank you. And up next, the CEO of Solstice Advanced Materials, which had its Wall Street debut today after spinning off from Honeywell on why his company is an under-the-radar, AI, and nuclear power play.

Be right back. Welcome back to overtime. Apple shares up about 3.5% now after hours here in overtime. After it was initially down about 3%, earnings did beat expectations. Revenue also better than expected, but a small beat. iPhone revenue, a $49 billion slightly below the estimate. But Tim Cook did tell our Steve Kovac that it's going to be a strong December for the iPhone as well. China sales falling, but expected to return to growth in this holiday quarter.

Meantime, check out Solstice Advanced Materials. The stock bouncing around today was lower in the morning, popping as much as 8% in the afternoon, shares closed slightly in the red. Solstice is the first of Honeywell's spin-offs to debut, has exposure to major growth trends right now, like AI and nuclear power, along with more steady divisions like refrigerants and health care packaging. Joining me now here on set and exclusive interview is David Searle, CEO of Solstice. advanced materials. David, welcome. Defense, chips, and nuclear. Why should I believe that these pretty hot areas are spaces where you can grow? Well, John, first of all, thanks for having us. It's a great day to go public on our own from Honeywell. But these are really the inflection

point of some great growth trends. Nuclear power expected to grow three to 400 percent over the next 25 years. Solstice has the only nuclear converting site in the United States. States, very exciting opportunities there. Defense growth continues with our microfibers, lightweight protection, and then AI, advanced computing. We have a lot of solutions there, data center growth. We really feel we're in a great position to capture these growth trends. What do you think of the most strategic IP that you've got that's going to matter in data center and AI? So with data centers, it's all about the chip as it gets thinner. We've got to have pure solutions on our materials, which we have. But then you've got to get the heat off the

chip. You have to get the heat out of the data center. That's where our thermal management, refrigerants come in, and then you need to power those data centers. And that's where nuclear energy also provides a solution. So this is a manufacturing issue? Is it a software and IP issue? How quickly can you deploy what it is that these data center needs that there's a huge pipeline of? Well, we're doing a lot of capital investment right now. We're expanding capacity in our copper magnies, manufacturing site in Washington. We're expanding manufacturing at our nuclear converting site in Illinois. So it's a manufacturing opportunity, and it's really making sure we can keep up with that demand.

So your spectra fiber products, how much of that is military, how much of it is police, as we see more countries outside the U.S., increasing their military spending? Is that something that you potentially benefit from? Absolutely. It starts with military with us. That's where usually the specifications began, and the military usually follows, as well as military across other parts of the world. So military demand is growing, and our microfibers, lightweight, armor protection, fits that bill. Refrigerents, we're talking about that in terms of supermarkets and things like that,

but is the IP sort of cross-useful in data center as well? 100%. It's regulated for next generation, low global warming potential. Our refrigerants go into HVAC, refrigerants, data centers, and we play right in there. We have a strong IP portfolio that gives us great protection as well. All right. David Sewell, thank you. Now a public company, Solstice spinning off. John, thank you so much. Appreciate it. Well, we're going to bring back Dan Ives of Wedbush now to talk about Apple and Amazon. Amazon right now up nearly 12% in overtime as those results came in strong,

particularly for the cloud business. Apple moving well into positive territory as well, now up 4.5% after it was initially down 3%. And Dan Ives, you said it was going to be up. I think you meant tomorrow, not in like five minutes, but there you go. these were the underdogs in the mag seven right the worst performers heading into today so does this show strength overall for big tech the way these two have performed or was the bar just so low that hey they did okay i think it's really it shows the big tech if you look at demand it's spreading i mean for apple the china story especially in terms of what the forecast that's extremely bullish

in terms of that china piece and then you look at the amazon they're on the outside looking in relative to what Redmond's doing, what Google's doing, hyper-scale. Look at those AWS numbers. I mean, that shows anyone that had doubts in terms of AI, is it a bubble, look at the spending. Look at that cap-backs. This is enough to erase the doubt?

I mean, it's 20%, not to, you know, look down the nose at 20%, but some of the smaller players have been up more than that. 20% is enough at AWS scale to answer the doubters. Well, it's my view. like, Jassy is an AWS guy, and I think everyone counted them out. I think this is them showing, hey, don't count us out. You look at demand, you have trillions that's going to be spent over the coming years.

They do have the biggest, when you look at AWS from a customer-based perspective, and then you actually start to look at what Microsoft, what Google, what we're seeing across the board, this shows that that AI revolution theme, it's spreading. And I think what that's going to mean authentication. That's going to mean cybersecurity. That's what I mean the use cases. And I think as a tech bull, you go into this weekend, more bullish on AI rather than less bullish relative to these tech earnings, despite meta selling off, which I view as a tablebounder.

A bit of a detente between Trump and Xi, the U.S. and China today. What does that mean for Apple? I mean, to me, like, look, cooks on the right side of it, right? I mean, playing nice in the sandbox and the beltway. I think that's very bullish relative to any worries about supply chain issues relative to to Apple in China, some of the stuff they're doing from an India perspective. Look, it comes down to cook, 10% politician, 90% CEO. And you start to think about what's happened on the China story.

That, to me, is a green light. Because now the runways there, rare earth thing kicked down. You have the trade framework out there. It's very strong for big tech, strong for names like Apple, with the exposure to China, names like Tesla as well. And I think that's the overall theme here is that now you're starting to see, Amazon, Apple get into, and I think second, third, fourth derivative is starting to play out. It's my view. That's why this tech bull market, two to three more years left relative to

this AI revolution trade. That would be a good advertisement for Tim Cook. If he needed one, 10% politician, 90% CEO, 100% up here in overtime. What is the Amazon advertising business role here because we saw a strong performance from alphabets, Google yesterday, from meta as well on the advertising line. When there are questions about how the consumer is going to perform in Q4, especially the working class consumer that stretched, what role do these digital advertising giants that can target effectively to a mass market play in the ecosystem? I mean, in our opinion, I mean, this could add 10 to 15 percent just the stock alone from an advertising because I don't Look, it comes down with like what's being factored into Amazon, the advertising, I think minimal.

You look at AWS, already counting them out. The consumer piece created from a margin perspective, I mean, that's already sort of discounted. So I just think Amazon now has a lot of levers from a growth perspective. Anthropics are going to be there. I think they're going to do a lot more acquisitions relative to Google win the DOJ suit. So this just comes down to, I think this is a company going on in the offensive rather than the defensive. And I think that's going to be Jassy's tone on the call. This affects the NASDAQ tomorrow?

Oh, I think tomorrow, it's going to be a nice, nice heading into the weekend for the tech bulls. You know, bears maybe were some white knuckles there that they were yelling given the meta. It just comes down to hyper-scale spending cap-back. It's a KAP-X super cycle. And that's why I think that continues to play out. And even though, you know, there will be some nervousness. I think this is a tech market that goes up another 7% rest of the year. Vindication for some bulls out.

there and you have been saying it all along for sure. Dan Ives. Thank you. Meantime, that's going to do it for us here at overtime. A lot more after hours action and fast money right now.