The COVID-19 pandemic has disrupted Apple’s supply chain, initially caused the price of Apple stock to plunge, shut down the company’s stores, forced product launches and major events like WWDC online, and caused sporadic shortages of some products. Despite all of the challenges, Apple actually reported modest revenue and earnings gains for its second quarter.
Apple’s stock price remains in negative territory for 2020, but its Q220 earnings along with recent share price increases show the company has been more resilient to the coronavirus than many expected.
Adjusted EPS of $2.55 topped Wall Street expectations of $2.26, while revenue of $58.31 billion topped the projected $54.54 billion. Operating income and net income were down year-over-year, but that revenue managed to eke out 1% growth compared to the same quarter last year.
“Despite COVID-19’s unprecedented global impact, we’re proud to report that Apple grew for the quarter, driven by an all-time record in Services and a quarterly record for Wearables,” Apple CEO Tim Cook wrote.
Apple stock dipped the following day, but it’s since gained that back, and continued its recovery since closing below $225 at the height of the March market selloff. Those Q2 results have shown that Apple is proving more resilient than some had expected… For the most part, investment analysts are feeling good about AAPL and its prospects. There are concerns — including the risk of the 5G iPhone 12 being delayed, and the growing likelihood of a global depression — but it’s felt that Apple is well-positioned to make it through these challenges.
MacDailyNews Take: Even global pandemic, and the worldwide reactions to it, cannot derail the runaway locomotive that Steve Jobs built!
Apple is currently trading up $3.30 (+1.09%) at $306.22. Apple’s all-time high of $327.85 was set on January 29, 2020.
I’m pleasantly surprised how well Apple is doing and it’s only trailing Microsoft in market cap by a slight amount. Considering how doomed Apple was supposed to have been, the stock really has made a decent recovery. However, if not for the CoViD-19 crisis it would have likely been much higher and at least closer to its high of $327 a share. Apple is now very close to the analyst consensus price target of $308, so I wonder if the stock price will climb much higher than that. I’m hoping it will.
It’s nice to know that Apple is still hiring employees in a job market that is definitely broken. I hope Apple is able to take advantage of an overflowing number of jobless individuals and possibly get some good tech employees that were let go by other companies.
Where’s Rod Hall?