Just days before the U.S. presidential election, tech’s five most valuable companies reported quarterly results. All five companies — Amazon, Apple, Facebook, Google, and Microsoft — have outperformed the broader market during President Trump’s first term.
Big Tech, their collective moniker, has been a huge outperformer during President Trump’s first term. The founders of Amazon, Microsoft and Facebook are now the three richest people in the world, and Google’s two co-founders are in the top 10.
Add in Apple, the biggest U.S. company by market cap, and you’ve got almost $7 trillion in stock market value, accounting for 46% of the Nasdaq 100. The stocks are up between 83% (Alphabet) and 291% (Amazon)… Unlike Amazon, Apple’s 272% market cap increase is not a reflection of growth, which has been subdued.
Apple has rewarded investors with buybacks, repurchasing close to $200 billion worth of stock since 2016, and increased dividend payments. It’s made up for flattening iPhone revenue by building a healthy software and services business and by introducing popular products like AirPods and bolstering Apple Watch sales.
Apple continues to crank out new iPhones and investors continue to bet that consumers will buy them. Earlier this month, the company announced its new lineup of iPhone 12 models, all of which support faster 5G networks.
“We believe wireless carriers are going to offer promotions to drive unit sales of iPhones to a much greater degree than they have in a long time to justify the billions of dollars they are spending to upgrade their networks,” wrote Tom Forte, an analyst at D.A. Davidson, in a report on Oct. 22. Forte recommends buying the stock and says, “Apple’s first lineup of smartphones on 5G networks are better positioned than investors completely appreciate.”
MacDailyNews Take: In Apple’s fiscal 2020, comprising the twelve months ended September 26, 2020, the company posted total net sales of $274.515 billion.
We’ll pause to let that sink in…
That’s up $14.341 billion over FY19’s total net sales of $260.174 billion.
During a global pandemic.
Apple’s buybacks and dividends do help, of course, but growing net sales to $274.515 billion during a global pandemic bodes quite well for future growth, epsecially as the multi-year Mother of All iPhone Super Cycles kicks off FY 2021!