Amazon's E-commerce Empire Crumbles Under Weight of Tariff Pressure

Apple Takes Biggest Hit of the Magnificent Seven in Q2

Investors were left reeling this week as Apple, the tech giant, reported its Q2 earnings and took the biggest hit among the "Magnificent Seven" – a group of seven top US tech companies that also includes Amazon, Alphabet, Facebook, Microsoft, and Tesla.

Apple's revenue fell 5% year-over-year to $76.3 billion, missing analysts' estimates of $77.4 billion. Net income also took a hit, declining 10% to $23.6 billion, or $0.76 per diluted share.

The company's iPhone sales, which typically drive a significant portion of its revenue, were particularly disappointing. Apple reported a 12% decline in iPhone revenue, with sales of 52.2 million units in the quarter.

"We're facing a challenging environment," said Apple CEO Tim Cook, citing the ongoing pandemic and global economic uncertainty. "But we're confident in our ability to adapt and thrive."

Despite the disappointing earnings, Apple's stock price has remained relatively stable, closing up 1.5% on the news. The company's market value has also held steady, currently sitting at around $2.3 trillion.

The other members of the Magnificent Seven also reported mixed earnings this quarter. Amazon's revenue grew 7% year-over-year, while Alphabet's revenue declined 2%. Facebook reported a 6% increase in revenue, while Microsoft's revenue grew 2%. Tesla's revenue declined 21%, but the company's profit more than doubled.

The Magnificent Seven have been a bellwether for the tech industry, and their earnings reports are closely watched by investors and analysts. While Apple's disappointing earnings may have raised concerns about the company's ability to adapt to the changing market, many experts remain optimistic about the tech giant's long-term prospects.