Tech Giants Face Challenges: Weak Demand and High Costs

US tech giants, Apple and Amazon, are facing challenges due to weak demand and high costs. Disappointing quarterly results have resulted in a plunge in tech stocks, troubling the markets.

Amazon's cloud division, AWS, experienced growth but also faces rising investments. Apple's overall earnings were better than expected, but iPhone revenue declined.

Both companies are also dealing with regulatory pressure. The market has responded with a drop in shares for these tech giants and other companies in the sector.

Analysts are divided on the future of AI investments and their impact on the stock market. Despite these challenges, Apple remains confident in the long-term prospects of its products, such as the iPad and Mac.

Amazon, on the other hand, faces price sensitivity from customers and increasing competition. The technology sector as a whole is affected by the disappointing reports, adding to an already poor market mood.

The future outlook for these tech giants and the industry as a whole remains uncertain.