Big Tech is getting wiped out in a brutal 3rd-quarter earnings season - but Apple isn't. Here's why.

• Big Tech stocks have plunged this week on the back of disappointing quarterly earnings.
• Apple stock was spared because the iPhone maker's results beat analysts' forecasts.

Lackluster earnings from some of America's largest technology companies have led to hundreds of billions of dollars being wiped from their market values this week.

But Apple's brand power and the affluence of its customers have helped it to impress Wall Street and escape a similar post-report selloff, analysts said.

Alphabet shares tumbled 10% on Wednesday, Meta's stock price plunged 25% on Thursday, and Amazon shares fell as much as 21% in after-hours trading on Thursday. Moreover, Microsoft shares slumped 8% on Thursday.

In contrast, Apple's stock inched up 1% in premarket trading Friday.

The iPhone maker is also faring better than its peers on a year-to-date basis. Its stock price was only down 20% as of Thursday's close, while Microsoft, Amazon, and Alphabet shares have slumped by more than 30%, Netflix has tanked 50%, and Meta has plummeted by about 70%.

"Apple has not cracked like the other tech firms, and shows how it can be done," Ben Barringer, an equity research analyst at Quilter Cheviot, said in a morning note.

By and large, Big Tech stocks tanked this week because their earnings fell short of Wall Street's forecasts. Investors also balked at slowing growth, excessive spending, and gloomy guidance against a darkening economic backdrop.

For example, Meta and Alphabet signaled that demand for digital advertising is flagging, while Amazon and Microsoft reported softer growth in their key cloud-computing divisions.

Meta was also punished by the market for continuing to pour money into its nascent metaverse business, while Amazon shareholders were spooked by a lackluster sales forecast for the holiday season.

More broadly, consumers and businesses are being squeezed by red-hot inflation and rising interest rates, which leaves them with less money to spend on goods and services.

Higher rates have also boosted the yields on bonds and savings accounts, increasing their appeal to investors relative to risky stocks. Downward pressure on household and enterprise spending, and the reduced appeal of equities, represent stiff headwinds for Big Tech stocks.

While Apple faces the same challenges, it beat Wall Street's quarterly revenue and profit forecasts this week. That likely reflects the pricing power it wields, thanks to its strong brand and popular products, and the relative affluence of its customer base.

"Apple mainly represents the segment of the economy that can afford higher prices no matter how much they have to squeeze, and this is just because they want to be classified as trendy individuals," Naeem Aslam, the chief market analyst at AvaTrade, said in a note.

Warren Buffett — whose Berkshire Hathaway company counts a $130 billion stake in Apple as easily the most-valuable holding in its stock portfolio — has made similar points in recent years.

Buffett, who famously prizes strong brands like Coca-Cola and Kraft, touted the tech giant as "probably the best business" he knows in 2020. Moreover, he invested $35 billion in the company after observing how obsessed people are with their iPhones, and how indispensable the device is to many people's lives.

Apple's powerful cachet with consumers likely helped it to navigate inflation and rising rates last quarter, and escape the Big Tech wipeout this week. Yet it's worth noting the company expects a tough economic backdrop to weaken its revenue growth this quarter, suggesting even its resilience has limits.