Tech Tidal Wave on Wall Street: Amazon and Apple Climb After the Bell; Alphabet Tanks in Extended Session
February 1 was an eventful day on Wall Street, and the action didn't stop with the closing bell. Apple stock rose 3 percent in the extended session, while Amazon stock shot up 6 percent.
"Amazon's cloud subsidiary Amazon Web Services surpassed analyst expectations on revenue, and is forecast to continue growing at a 40 percent pace, despite intensifying competition from Microsoft and Google," writes Chloe Aiello in CNBC Market Insider.
Alphabet (aka Google) took a nosedive in the after-hours trading, falling as much as 4.5 percent before recovering slightly.
Reports of weak iPhone sales made Apple a question mark, but investors seemed happy enough with the overall numbers. And Apple's incredible cash pile is making people wonder if Apple will make a move to acquire Netflix, which would significantly strengthen its position as a creator of original content.
From a purely tech industry perspective, however, Amazon's rise was the big headline. "Amazon.com Inc.'s blowout earnings report Thursday was powered by big sales associated with its Alexa voice assistant, hefty profits at Amazon Web Services and a tax benefit of $789 million, sending its stock toward record highs that could mean a $700 billion valuation," writes Therese Poletti in MarketWatch.
Is Healthcare Heading for Disruption?
Once again, Jeff Bezos and his team at Amazon have proven that no industry is to too large or too complicated for them to tackle. This week, Amazon and two other large firms set their sights on healthcare. The big question is whether healthcare can be conquered - or at least tamed by the amazing Amazon disruption machine.
On Tuesday, "Amazon, Berkshire Hathaway, and JPMorgan announced a vague but market-moving plan to launch an independent company that will offer healthcare services to the companies' employees at a lower cost. The venture, which will be managed by executives from the firms, will be run more like a non-profit, than a for-profit entity," writes Preeti Varathan in Quartz.
How did the market respond to the announcement? "The market value of 10 large, listed health insurance and pharmacy stocks dropped by a combined $30 billion in the first two hours of trading," according to the Quartz article.
Keep an eye on this story. It will be fascinating to watch it evolve.
2018 Charlotte CIO Summit Focuses on the Culture of Genius: Lead, Reimagine, Reinvent and Disrupt to Drive Growth and Create Value in Unprecedented Times
Today's business landscape changes so quickly that you can easily be caught off guard and fall behind. Is your organization ready to disrupt its existing business model? Or will it be disrupted and outflanked by competitors with more speed and agility?
The CIO is at the center of the digital transformation journey, uniquely positioned to deliver fearless leadership, fuse emerging technologies with process redesign and people skills, partner with the C-suite and board of directors, and successfully navigate the business into the future.
The courageous leadership traits needed to foster a culture of innovation and transformation on the path to genius will be the focal point of the 2018 Charlotte CIO Executive Leadership Summit on February 13.
World-class speakers and presenters include Marc Hamer, Corporate VP, Digital and Global CIO, Sealed Air Corporation; Drew Lockhart, CIO, Ally Bank Consumer and Commercial Products; Mark Moore, COO/Co-Founder, Inxeption; Vijith Nair, SVP, Global Regulatory Reporting - Transaction Review Program Leader, Bank of America; Kimberly Stevenson, SVP, Products and Solutions, Lenovo Data Center Group, Lenovo; Suhas Yerra, CIO, General Insurance, AIG and many more.
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