The Rundown - Apple Guides to Record-Breaking Holiday Quarter, Amazon Posts Best Cloud Growth Since 2022

Episode Date: October 31, 2025

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Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zadadmani, and today is Friday, October 31st. In today's episode, we'll tell you all the deals announced following the meeting between President Trump and President Chi. We'll also tell you why investors are hyped following earnings from Apple and Amazon. Then stick around to the end of the show to find out how much a bag of Halloween candy cost today compared to just five years ago. We got a great show for you today. Let's go.

Stocks took a hit on Thursday with the S&P 500 dropping 1% and the NASDAQ lost 1.6% dragged down by big tech stocks like Meta, which tanked 11% yesterday following their earnings. We covered Meta's earnings along with Google and Microsoft on yesterday's episode, so go check that out if you missed it. The big takeaway here is that investors are starting to wonder how long these big tech companies can keep pouring billions of dollars into AI CAPEX without showing a meaningful return on investment. Plus, I think investors are still thinking about the comments that Jerome Powell made on Wednesday about potentially no rate cuts in December. So all of that had the markets in the red yesterday.

Now, the other major development yesterday was the face-to-face meeting between President Trump and China's President Xi in South Korea. The two sides met for the first time face-to-face in six years, and they struck some deals. Trump says he's rolling back the fentanyl tariff on China by 10%, bringing their overall tariff rate from 57% down to 47%. On top of that, both sides agreed to pause tariffs on shipbuilders for one year, and China also pledged to ease export restrictions on rare earth minerals.

So overall, there was good development out of that meeting. I think there's still questions around chip export bans to China and the TikTok deal, plus what's going to happen to rare earth's long term. But it does seem like tensions between the two sides of ease compared to what it was at the start of the month. So we're going to continue to track the U.S.-China development. I don't think the markets are super focused on it anymore. I think they're more focused on big tech earnings. We're about to talk about some earnings right now and more over the next few weeks. So make sure you guys are subscribed to the podcast and tuning in every day to stay in the loop.

Let's run through some headlines, starting with Apple. Apple reported earnings last night, and the numbers were pretty solid. In fact, Apple pulled off the earnings trifecta. Revenues were up 8% year over year to over $102 billion, slightly beating estimates. Their earnings per share also beat estimates coming in at $1.85 per share. And the cherry on top was that Apple raised its forecast for this current quarter with CEO Tim Cook saying the company expects revenue growth of 10 to 12%, making it the best quarter in Apple's history. So solid numbers all around.

It seems like the iPhone 17 lineup has been a big hit this year with Apple expecting double-digit growth. And looking beyond just hardware, Apple services business continues to be a growth engine. Revenues were up 15% to almost $29 billion. This segment includes everything from app store fees, Apple TV subscriptions, and ICloud storage. At this point, I'm basically forced to pay Apple $10 a month so they don't delete all the pictures of my kids off my phone. And I'm probably going to keep paying because I'm too lazy to manually back up my photos. Now, I should point out that not everything in this earnings report was great. China continues. to be a weak spot for Apple. Revenues there fell by 3.6% to $14.5 billion. That missed estimates.

It looks like local smartphone makers in China, like Huawei, continued to take market share from Apple. But Tim Cook was optimistic about Apple's China sales, saying that they will bounce back this quarter. And then the other thing was tariffs. Those added about $1.1 billion in cost last quarter. But Apple says that they're absorbing those costs instead of raising prices. I think Tim Cook doesn't want any beef with the president. All in all, I'd say it was a pretty solid quarter for Apple. They had solid numbers in the last quarter and they're expecting solid growth moving forward. Investors like what they heard and Apple stock jumped 4% following the report. Now let's talk Amazon. They also reported earnings last night and they crushed it,

especially their cloud business. AWS's revenues jumped 20% to $33 billion, making it the fastest growth since 2022. Now, AWS is a huge part of Amazon's overall business. It only makes up about 15% of their total revenue, but it's responsible for about 60% of their operating income. So it's basically Amazon's profit engine and it's something that investors pay very close attention to. And lately, AWS has been feeling the heat from competition from Microsoft and Google. Microsoft's Azure grew by 40% last quarter and Google's cloud grew by 34%. Both of them faster than AWS. But Amazon reminded investors that they are still the biggest player in cloud when it comes to overall revenue, and they're putting up strong growth numbers again. CEO Andy Jassy said that demand for its AI

services is outpacing the rate that they can bring new data centers online. That's always a good problem to have. And just like the other big tech companies, Amazon plans to spend a ton of money on AI. They spent $34 billion in CAPX last quarter, mostly to build out AI data centers. And overall CAPX is expected to hit a record $125 billion this year. Just for some context, that's more than what Google plans to spend and nearly double with Microsoft's current paces. CEO Andy Jassy defended the spending spree saying that every bit of new capacity that comes online is being monetized as fast as they build it. And I think that's why investors don't seem to mind all the CapEx spending. In fact, Amazon's stock jumped more than 11% following the earnings report. I think investors were

just happy to see that AWS is putting up solid growth numbers again. And if you look beyond AWS, Amazon's retail business continues to hold up well despite tariffs in a tricky economy. And their ads business grew by 24% to over $17 billion. Overall, Amazon's revenues were up 13% and their profits were up 38%. So a very good quarter for Amazon, they needed a quarter like this. You know, Amazon stock has been the worst performing out of all the Mac 7 this year because they were seen as being behind an AI. But this quarter just reminded Wall Street that they are still very much in the game.

Let's talk about some stocks making moves today. Netflix stock is moving higher this morning after they announced a 10-for-1 stock split. Netflix is just one of 10 companies in the S&P 500 that has a stock price of above $1,000. So after this split, the price will be one-tenth of what it's trading at today. Investors will get nine extra shares for every one that they own on November 14th, and the new adjusted price kicks in on November 17th. Now, remember, stock splits don't change the value of a company or your investment in that company. It just adjusts the price of each individual stock. And they're almost unnecessary at this point because investors can buy stock.

fractionally. But it is a psychological boost when investors see a lower stock price. It tends to drum up retail interests. It also makes it easier to do a covered call strategy. So as a result, Netflix shares are up about 2% this morning. In other Netflix news, they just hired an investment bank to explore a potential bid for Warner Brothers Discovery, which is up for sale right now. Warner's has a lot of great assets. They have HBO, the Harry Potter franchise, the DC superhero universe. So that could be a huge move for Netflix if they're able to pull off this bid. Developing story, definitely keeping my eye on that. Now, sticking with the winners here, let's talk about Reddit.

Their stock is jumping this morning after the company posted strong Q3 earnings and give a strong guidance for Q4. Revenues in Q3 jumped 68% year over year to $585 million, blowing past estimates, and their profits hit $163 million up more than 400% from last year. The company is also seeing strong user growth, daily active, unique, users grew by 19% to 116 million, which is ahead of expectations. So it looks like the AI chatbods aren't pulling away traffic from Reddit just yet, which is making investors happy.

Reddit stock is up more than 10% this morning in reaction to the earnings. Now, on the flip side, Roku stock is down this morning after the streaming company warned that revenue growth will slow in Q4. The company is expecting 12% growth in Q4, which is below the 14% growth they posted in Q3, and the 15% growth they had in Q2. Roku is still struggling from cautious advertisers and tough competition from the likes of Apple TV, Amazon Fired TV, and Google Chromecast.

But it wasn't all bad news for Roku. They actually posted their first operating profit since 2021, earning $9.5 million in Q3. But that wasn't good enough for investors. Shares of Roku are down more than 4% this morning in reaction to the earnings. Let's wrap the show with a fun. The scariest thing that I saw this Halloween wasn't a costume or a haunted house.

It's the price of candy. According to research by finance bug, a 100-piece variety bag of candy now costs more than $16 up from just the $7 it was back in 2020. So the prices have more than doubled in just five years. This price increase is largely because chocolate has gotten so expensive. Chocolate prices have gone up nearly 30% since last Halloween, and it's up almost almost 78% in the past five years. So yeah, man, I went to go buy some candy.

It was expensive. I still ended up buying the variety chocolate bag. But I thought about just handing out like applesauces and pretzels this year. Well, all right, guys, that's the rundown for today. That's the rundown for this week. It was an action pack week, but we made it to the end. And we got some more bonus episodes coming out this weekend. We're posting a deep dive episode tomorrow.

Then Kyla Scanlan will be joining the podcast for a Sunday episode. So make sure you guys keep an eye on your podcast feature. that. Thank you guys so much for listening, watching, and commenting. Shout out to Mike and Connor for all the work behind the scenes. And we'll see you guys back here tomorrow for the deep dive. Rose and lasagna, medium power, 15 minutes. Sounds like Ojo time. Let's play. Feel the fun with Play-Ojo. The online casino with all the latest slot and live casino games. What you win is yours to keep with no wagering requirements, instant payouts and no minimum withdraws. I just won.

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