Gene Munster offers comfort for long-term Apple shareholders

Apple will report March quarter (fiscal Q220) results on Thursday, April 30th. Due to the COVID-19 pandemic lockdowns, the March and June quarters will be messy for all companies, including Apple, Loup Ventures’ Gene Munster says as he offers Apple shareholders hope longer term.

Apple shareholders. Image: Apple Park
Apple Park in Cupertino, California

Gene Munster for Loup Ventures:

While the numbers are noisy, we expect investors will leave the March results with greater comfort that the company will be a return to its growth curve next year based on its cash position and commentary about upcoming products. We believe this will lay the foundation for shares of AAPL to continue to reach new highs in the years to come.

Apple’s products are indispensable in keeping people connected at work and with friends as we shelter at home. Telemedicine, Facetime, streaming, contactless payments, remote health monitoring, and distance learning are all global trends accelerated during this period with Apple’s support today and in the years ahead. Apple entered the pandemic strong, and the company’s products are even more a foundation of our lives compared to last year.

In this historically difficult period, Apple will not be immune. It should be expected that Apple’s Jun-20 quarter will be significantly lower than the Mar-20 in terms of revenue and earnings and viewed as an aberration. For June we’re expecting revenue of $46B, compared to $51B in March.

Sep-20 will likely be a transition quarter as the economy comes back online. Economic growth and vitality should be expected to quicken through the September quarter as the unprecedented fiscal and monetary support globally begins to take. We expect by Mar-21 growth will have returned.

MacDailyNews Take: Apple shareholders should have hope long term as the company is very strong and, after we get through this obviously aberrant economic period, we expect Apple to bounce back well.

Apple Q320 guidance, if they provide it, will be interesting.

Next year this time, we’ll hopefully have the miracle of an early, effective, and safe vaccine along with effective treatments for COVID-19 and these lockdowns will be behind us for good!

3 Comments

  1. If we don’t do anything, the CCP would grant us Covid-20 and Cocid-21 and many more after.
    In recent history, SARS, bird flu, swines flu came from China 🇨🇳.

  2. It would be nice if Apple acquired some cloud server business which seems to thrive under nearly all conditions and doesn’t require many employees to keep running. Microsoft was basically left untouched by all this virus nastiness while nearly every business Apple had was at a standstill. However, Apple is doing quite well and I see no reason why any Apple shareholder should panic.

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