AI Spending Finally Pays Rent

Welcome to LazyListen. This is The Daily Rip for today. I.

spending into solid growth, overshadowing Apple’s tariff-boosted earnings beat. Let’s break down what’s driving the action and what to watch next. I.

investments and shifting consumer trends. S. posted its fastest growth in over four years, with cloud sales up thirty-seven percent to more than forty-two billion dollars.

I. infrastructure spending paying off. Amazon’s earnings per share came in at five dollars and seventy-five cents, well above the expected two dollars, boosted by a fifty-three billion dollar pre-tax gain from its Anthropic investment.

S. I. bets are finally paying dividends.

Shares jumped nearly four percent in regular trading and climbed eight percent after hours. Contrast that with Apple, which reported record revenue and earnings for the June quarter but saw shares slide after hours. The beat was partly due to tariff refunds that added about two percentage points to gross margin and eleven cents to earnings per share.

Without that, Apple’s earnings would have been closer to consensus at about one dollar and ninety-one cents per share. iPhone sales grew twenty-two percent to over fifty-four billion dollars, and services revenue hit nearly thirty-one billion, but the market wanted a cleaner beat given Apple’s premium valuation near forty-five times earnings. The stock dropped about four percent after hours, reflecting concerns over the quality of the beat despite strong underlying sales.

In other earnings, Reddit crushed expectations with revenue of eight hundred and five million dollars, beating estimates by seventy-five million, and raised guidance for the third quarter. Advertising revenue surged sixty-four percent, but shares fell seven percent after hours due to slowing growth in logged-in users and choppy search referral traffic. S.

user growth was only six percent. Investors are cautious about Reddit’s ability to sustain ad momentum amid these user trends and ongoing negotiations over a sixty million dollar data-licensing deal. Coinbase reported a tough quarter as the crypto winter continues to weigh on trading volumes.

Revenue came in at one point two billion dollars, below expectations, and the company posted a net loss of three hundred fifty-nine million dollars. Transaction revenue dropped twenty-one percent quarter over quarter to about six hundred million dollars, and monthly transacting users fell to seven point six million from eight point seven million. Despite gaining market share from nine to ten point three percent, Coinbase’s adjusted earnings before interest, taxes, depreciation, and amortization was two hundred eight million dollars, showing that even with share gains, the shrinking crypto market limits profitability.

Shares dropped five percent after hours. On the IPO front, Jersey Mike’s debuted on the NYSE but closed six percent below its twenty-three dollar offering price. The sandwich chain raised about one billion dollars, valuing it at seven point three billion dollars, roughly one hundred thirty-three times last year’s earnings.

With nearly three thousand three hundred locations, mostly franchises, and three percent same-store sales growth, the market is questioning whether the lofty valuation can be justified amid soft restaurant traffic and the need for aggressive expansion to drive growth. I. supply chain saw a notable winner in AXT, whose second-quarter revenue jumped from eighteen million to nearly forty-eight million dollars, and gross margin soared from eight to forty-five percent.

I. data centers, turning a speculative story into real earnings. ImmunityBio gained nine percent after the UAE authorized its ANKTIVA drug for bladder and lung cancer, broadening its international footprint, though investors remain cautious about how quickly overseas approvals will translate into revenue.

Roblox shares fell nearly fifteen percent despite thirty-six percent revenue growth, as bookings barely grew and user monetization softened, raising questions about engagement quality and near-term spending. m. Eastern, which will provide fresh insight into consumer confidence amid ongoing economic uncertainty.

Earnings to watch in pre-market include Moderna, ExxonMobil, Chevron, AbbVie, and Ballard Power Systems, among others. After-market, Trump Media & Technology Group will report, adding to the mix of tech and energy sector updates. S.

I. spending can fuel profitable growth, setting a high bar for tech peers. Apple’s solid but tariff-boosted results remind us to look beyond headline beats.

Reddit and Coinbase highlight challenges in user engagement and market conditions, while Jersey Mike’s IPO shows the risks of lofty valuations in consumer sectors. Watch tomorrow’s economic data and earnings for further clues on market direction. Thanks for listening.

Catch you next time on LazyListen.