“The initial response to Apple’s earnings release was not good,” Evan Niu writes for The Motley Fool. “Shares promptly tanked by 9% immediately following the report, erasing $66.5 billion from the Mac maker’s market cap in a matter of minutes. Shares recovered modestly after Tim Cook and company had some time to explain the figures.”
“Revenue jumped 33% to $49.6 billion, gross margin expanded to 39.7%, and net income was $10.7 billion,” Niu writes. “While iPhone units jumped 35%, iPhone revenue soared 59% to $31.4 billion. That was thanks to strong iPhone average selling price of $660, an incredible $99 jump from a year ago. Apple also said it enjoyed the highest rate of Android switchers ever during the quarter, while the App Store hit a new quarterly revenue record. iPhone sales were up 87% in Greater China, compared to the market’s 5% growth there. Furthermore, only 27% of the iPhone installed base has upgraded to a 6 or 6 Plus, so there’s still plenty of room to run.”
“Apple reports a strong quarter, but shares still fall,” Niu writes. “Investors were disappointed in the company’s guidance, but they shouldn’t be.”
Read more in the full article here.
MacDailyNews Take: In professional golf, you know what they say?
“Fortunes can be made during the Silly Season.”
SEE ALSO:
Wall Street blew it: Apple’s stock slide isn’t the company’s fault – July 22, 2015
Nasdaq retreats amid tech selloff after Apple’s record results – July 22, 2015
Apple earnings: Good is never good enough – July 22, 2015
Cowen downgrades Apple on record quarterly earnings results – July 22, 2015
For Apple, more success raises more questions – July 22, 2015
Sorry, haters: Tim Cook confirms Apple Watch sales are much better than you think – July 22, 2015
Here’s how many Apple Watch units Apple sold – July 22, 2015
Drudge screams: ‘APPLE FUTURE QUESTIONED’ – July 21, 2015
Apple poised for $50 billion valuation loss after posting ‘disappointing’ record earnings – July 21, 2015
Apple shares plunge after ‘disappointing’ record third quarter results – July 21, 2015
MacDailyNews presents live notes from Apple’s Q315 Conference Call – July 21, 2015
Apple pulverizes the Street with record third quarter results – July 21, 2015
Apple: revenue growth +33%, net margins=22%, stock down
Amazon: revenue growth +20%, net margins< 1%, stock up
Investor madness is infinite.
You noticed that, too. EPS of 19 cents and Amazon is up over 17%,
You did own AMZN too? Right? Tell me you’re at least that smart! Wow! Dumbass!
hey Smartass, I own what I know and understand well:
AAPL, since 1997. Do you? Never sold a single share.
AMZN is pointless, just one of a million retailers essentially, buying revenue.
Riiiiiiiiiight. Sure you have.
yep,
2800 bought in 1997 (Power Mac user since 1995)
2800 bought in 2000 (it’s called doubling down)
5600 NOT-bought in 2003 (missed entry point)
1400 bought in 2008 (after Lehman Brothers crash)
all split adjusted
Hey, see-ya: Currently have 40,000 shares of AAPL in our portfolio, accumulated since the mid-80s . . . Average price per share, split adjusted, $1.71. Our brokers think we’re gods, even though they have tried to get us to sell most or all of our position almost every time we meet.
How ’bout you, genius? Top that with your AMZN stock? Be glad to meet you at the corner Starbucks with proof if you’ll bring matching numbers. Yes? No? Thought so.
liar, liar pants on fire.That means you’re full of shit. Oh, and I have 1 million shares of AAPL. And 1 million shares of AMZN.
Since 2004 my primary (sometimes only) source of income has been trading AAPL options.
In the last year a HUGE disconnect has emerged between Apple’s performance and WS’s reaction.
AAPL is currently being bid in the bottom third of the S&P 500, even though it performs in the top 20% of the Index.
This isn’t stupid, its criminal.
As a trader, essentially you bet against other traders, and with options you are ONLY betting because of the arbitrary expiry dates. I’m not doing that because on average, you can’t benefit from the money companies actually earn. I think the huge disconnect is neither stupid nor criminal, it’s random.
If it is criminal:
1. It’s to burn Leaps
2. It’s to keep share prices low so Apple can buyback shares and take it private with the help of outside financing when they have maybe half the cap in cash.
After that stellar report, anything below $150 is criminal and should be investigated.
@Revolt: Sometime I wonder the same like you. Perhaps, Apple purposely keeps the price down so it can buyback at cheaper prices. It is getting more bizarre as time draw on.
AMZN up 22%!
And since you know this, surely you made lots of money this week? I mean goodness if you have it all figured out you must be rich beyond belief! If Apple always gets bitch slapped at earnings, and it usually does, then hopefully you were smart enough to have taken advantage of this every three month event. Smart people did.
The money changers still rule the world.
Apple has the ability to be run like Amazon. Instead of throwing money away on buybacks, they could just have taken that $140 billion and bought some companies that could earn them some revenue. Jeff Bezos is smart enough to spend every penny building up Amazon for the future and investors believe in his vision. Apple is throwing money away and getting absolutely nothing for it. Institutional investors are dumping Apple and buying Google and Amazon because they think those companies are building towards a future. It’s plain to see investors don’t have any interest in only iPhones. Apple didn’t sell enough iPhones to please investors and had little else to offset that loss.
I don’t have a problem with what Apple is doing because the company is making plenty of money as it should be. However, as far as Wall Street is concerned Apple is doing very little for investors. The way Apple tanked on earnings is enough to show quite a few investors are very displeased with how the company is being run. I had thought buybacks were useful in order to increase the EPS and I thought an increased EPS was welcomed by investors. I guess I was wrong. Even as the EPS rises, institutional ownership has actually fallen a bit. From my standpoint, Apple has more than enough money not to disappoint shareholders every quarter and so I perceive something isn’t right. Apple should easily be a far better investment than Amazon, but over the past five years Amazon is making Apple shareholders look positively stupid. Amazon’s share price is always going up while Apple’s share price is going almost nowhere relative to its accumulating wealth which I find very odd.
I’m not saying I’m right with this assessment. It’s just how it seems to me.
Part of the problem is the irrational fear of the “law of large numbers”. Generally speaking, the bigger a company gets, the harder it is to continue to grow. Apple has already blown away Wall Street. And WS keeps wondering when Apple will stop growing. It has to, some day, right? I mean, Apple is already the biggest company in the world. Many investors are frightened of Apple’s success. Rather than think of Apple’s future potential in analytical terms, they are just generically afraid of Apple because it is so big. Some investors just cannot imagine where Apple’s growth will come in the next 2 to 5 years. Instead, they think Apple will simply have to cave in at some point. They don’t want to be looking for a chair when the music stops. So they don’t invest in Apple.
However, I think they are wrong. They are looking at Apple the wrong way. Apple is the one company that has figured out how to make stuff people want to buy. Been doing it for years. And they keep doing it.