By Caroline Valetkevitch
NEW YORK (Reuters) -Shares of both Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) eased in after-hours trading on Thursday, with forecasts including Apple’s estimated tariff costs disappointing investors after U.S. tech-related shares jumped earlier in the day.
Apple’s stock was down 4% after the bell. While the company’s results were better than analysts had expected, CEO Tim Cook said estimated tariffs will add about $900 million in costs to the quarter ending in June if rates do not change.
Cook also outlined changes to the company’s supply chain to minimize the impact of U.S. President Donald Trump’s trade war.
Amazon.com shares were down 2.5% after it reported first-quarter cloud revenue growth and forecast operating income below estimates.
During the regular session, U.S. technology-related stocks including many involved in artificial intelligence rose sharply following stronger-than-expected results from Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META) late in the previous session. The Nasdaq gained 1.5% on the day.
Their results helped allay fears the massive spending on AI in recent years would not be rewarded.
Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, said Apple "has storm clouds on multiple fronts," and cited tariffs on its call. But he said he’s still upbeat on megacap tech-related names overall, noting the strong results from other names in the group.
Microsoft shares ended 7.6% higher on Thursday after it said late Wednesday that AI’s contribution to Azure growth increased to 16 percentage points in its fiscal third quarter, from 13 percentage points in the previous three months.
Shares of Meta Platforms ended 4.2% higher. Its report, also late Wednesday, signaled that its AI-powered tools helped draw advertising dollars despite tariff-related economic uncertainty.
Also during the session, AI heavyweight Nvidia (NASDAQ:NVDA) rose 2.5% and Broadcom (NASDAQ:AVGO) gained 2.5%.
Amazon ended the regular session up 3.1%, while Apple ended up 0.4%. A federal judge ruled the iPhone maker had violated a U.S. court order to reform its App Store.
The top U.S. technology and growth stocks, known as the "Magnificent Seven", had stumbled early in 2025 as investor concerns about the economic fallout from Trump’s tariffs grew. Even though the group has rebounded since Trump paused many of his heftiest tariffs on April 9, investors have been closely watching their results.