Playing FTSE

Duo & A Big Tech Duo

May 4, 2025
The hosts dive into stock performance, comparing their results with major indices. Amazon's mixed Q1 performance raises questions about AWS growth, while Apple struggles with slowing services and manufacturing shifts. They discuss supply chain strategies and the impact of tariffs on pricing. Duolingo's post-IPO journey showcases subscriber growth and AI’s influence. Additionally, insights into the aerospace sector reveal challenges and restructuring efforts, painting a vibrant picture of current market dynamics.
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INSIGHT

Amazon's Growth Drivers & Constraints

  • Amazon's ad services, AWS, and subscriptions drive growth and profits.
  • AWS shows strong margins but is currently capacity constrained due to AI demand.
INSIGHT

AWS Has Massive Growth Runway

  • 85% of global IT spend remains on-premises, indicating huge growth potential for AWS.
  • Amazon's negative free cash flow reflects investment cycles, not weakness.
INSIGHT

Apple Faces Slower Growth & Tariff Shifts

  • Apple’s services growth is slowing, causing investor concern.
  • The shift of iPhone manufacturing to India and Vietnam aims to mitigate tariff risks.
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