Bloomberg Technology·2025-08-01 19:06Apple's Challenges - Apple stock's performance is tied to the iPhone replacement cycle, which is delayed, potentially hindering its ability to outperform [1][2] - Apple's generative AI capabilities are perceived as lagging behind competitors like Google, potentially weakening the iOS ecosystem's appeal [3] Amazon's Cloud Performance - Amazon's cloud growth, while at 17%, is facing margin pressure, with margins decreasing to 32% from 39% last quarter [4][5] - The market is concerned about Amazon's cloud margins compared to competitors like Google and Microsoft [5] - Amazon is investing heavily in areas like Kuiper and same-day delivery, which are not yet generating significant revenue, causing investor concern [9] - Amazon's AI strategy focuses on hosting other companies' large language models on its cloud platform [10] Cloud Market Dynamics - 85% of companies are still using physical servers, representing a significant opportunity for cloud providers like Amazon [7] - Amazon is still the largest cloud provider, being 65% bigger than its next closest competitor [6]