Apple obliterates earnings expectations, but share price barely budges

Apple reported its Q2 2021 earnings after the closing bell on Wednesday, obliterating analysts’ expectations on the top and bottom line. Revenue was up a stunning 54% year-over-year on strong hardware sales in the quarter.

Apple shares barely budged, up fractionally (0.68%) over Wednesday’s close.

Apple Park in Cupertino, California
Apple Park in Cupertino, California

Daniel Howley for Yahoo Finance:

Executives on Apple’s conference call warned of the impact of the ongoing global chip shortage on Apple’s hardware business. Supply constraints could have a revenue impact of $3 billion to $4 billion in the June quarter, Apple’s CFO Luca Maestri said on the earnings call.

Those shortages will mainly affect the iPad and the Mac, CEO Tim Cook said. “And so, we’ll have some challenges in there, and challenges in meeting the demand that we’ve got. The demand feels very strong right now,” Cook said.

The biggest dark cloud hanging over Apple and other consumer tech companies is the ongoing global chip shortage, which could last into 2022.

The fear for Apple is that a lack of available semiconductors could slow the company’s ability to get products built and into consumers’ hands. So far, Apple has fared well, but a long-term slowdown in chip availability could ding its revenue going forward.

MacDailyNews Take: At publication, Apple shares are trading at $134.49, up $+0.91 (+0.68%) over yesterday’s close prior to the release of the company’s earnings report.

27 Comments

  1. As usual, the market punishes Apple. A pathetic dividend increase is likely one reason. The richest company in the world can’t maintain a double digit dividend increase. Unreal. Many institutional investors buy on dividends and Apple loses out big time here.

    Not even a 1% gain on record earnings.

    If this doesnt tell Apple that something is wrong, nothing will.

    1. The easiest and best thing AAPL can do is punish the shorters with massive dividend hikes. That’s the cold beer in the summer heat. Buy-backs are simply the foam on the beer.

    2. I assume you sent a detailed letter to Timmy to tell him exactly what would deliver superior business results. It’s just too bad you couldn’t share those exciting details with us here.

      By the way, what company do you run?

    3. What are you talking about? The market hasn’t punished Apple. AAPL is off -0.06% on the day.

      If losing those ten cents is too much for you to bear, you need to get out of the stock market. Pronto. The market goes up and down every day due to forces that no amount of whining will stop. Consider fixed return investments so you don’t have to be so bitter about change.

    1. It’s not baked into the price because AAPL is well below its record high. Were Apple’s record numbers to be baked into the price then AAPL would be setting new highs. Not even close.

  2. WS anals-ysts, once again, show how crooked and rigged this market thing is.

    Hey anals! What are the new metrics now that Apple is destroying expectation for the last 10 years+!

    Better adjust and show us clearly what is good so we can invest in your new rigged policies. People needs to know before investors start flying away and invest in other market.

    The world is starting to laughing now.

    1. You have no idea what you are talking about. Not even slightly. Apple has 4 BILLION plus shares out there. A certain percentages trades every single day. Those trades are what determines the share price. No one downgraded Apple today. Most analysts have price targets far above what Apple trades today.

      No, the reason why the share price is failing to perform today is because few people are willing to buy Apple. If there was a stampede of new buyers, the price would go up. Instead, it’s barely up 0.4% as I type this. No one believes in Apple’s future as a powerhouse earner because of their financial performance. iPhone sales are not sustainable at huge levels forever. A quarter or two of great sales is all well and go but at some point it’s going to go back down. It has for years.

      Share buy backs are ephemeral. 50 billion worth of shares was purchased last year, driving up the price but the market took the price down so that money was essentially incinerated.

      Dividends once distributed are MINE to keep and save. Apple instead would rather incinerate the money.

      I am a very very long term Apple shareholder but am tired of not getting realistic dividend increases. Apple does not even pay 1% back to the owners of the company.

      Completely and totally unacceptable.

      1. Ah ok, Thank you for sharing your intake. Let’s talk about Gamestop now. Shall we?

        Lots of consulting firm are upping the target price of Apple like you said but… Fewer people are willing to buy? Why so? Strange.. Upping publicly is far from consulting one to one.

        I too am a longtime shareholder. Look at how Paulo Santos from Seeking Alpha is periodically destroying AAPL. How agents still not believe in the long run. Despite everything Apple is doing they are still only a phone company to many. Not rigged?

        Tim Apple started the share buyback program. It is an incentive but an illusive one. You bought in.

        Your vendication is easy on the market.

        And you are telling me AAPL is getting hammered because the incinerate money? GTFO!

        Cheers

  3. Two consecutive blowout quarters and zero stock appreciation, during a pandemic no less with multiple store locations still closed – nothing short of miraculous I’d say for any corporation. Hang on folks we’ll get our stock lift.

  4. Obviously Wall St was more interested in the riveting State of the DisUnion by the Installed WH Occupant than Apple’s boring billions.

    1. Thanks for demonstrating your lack of effort at unity. After 4 years of manbaby tweets, it was refreshing to hear a level-headed adult president urge for action on stuff we all know needs to be reformed and improved.

      You could join the train and propose solutions everyone can benefit from, or you can keep pounding sand on a Mac blog. Your choice.

        1. Yes, it was mentioned in quite some detail. We all agree that immigration systems are a mess and border security needs attention.

          Big Cheeto had 4 years to so something so his one grand idea was to militarize the border using 11th century technology easily defeated by a tall ladder and … wow, look how great that turned out. When is the check from Mexico arriving? Zero effort was expended slowing migration from the source using diplomacy, international cooperation, or any other realistic means.

          FYI, the infrastructure plan presented by the current administration has significant funds for technological border security enhancements. You might have to turn on your ears to hear better.

          1. Unity? After a criminally fraudulent election? After conservatives are put on no fly lists for their political views? After all major corporations blacklist, deplatform, shadowban, censor, fire and promote hate of their Trump-supporting, mostly white customers? After anyone to the right of Bernie Sanders is labeled a racist, fascist, Nazi, sexist, homophobe, etc.? You’ll be lucky to avoid full-blown civil war this decade. Expect much greater disunity as your psychotic mass immigration policies continue to disintegrate American society, jerkoff.

            1. To repeat, it’s a stretch to claim that conservative voices are being silenced while they have the top-rated radio and TV opinion programs.

            2. Agreed. Conservatives are being canceled, censored, banned, scorned all over Big Tech social media and the internet.

              All started with banning President Trump based on fake media lies, and award winning NY Post news stories still accelerating at a rapid rate. Think Facebook jail for simply posting politically conservative views.

              Meanwhile, the LEFTIST HATE social and Big Media continues with rare exception, one happened today. Senator Tim Scott stunned the world with his superb rebuttal to President Biden’s speech containing elements of systemic Democrat racism. Unless you only watch CNN and alphabet news channels, you completely missed the facts. Also, would not know Biden is on record with many racist comments for several decades.

              Case in point a rare win: Scott was excoriated on Twitter after his speech for 11 hours endured racist insults and called “Uncle Tim.” The Leftist media such as NBC News, CNN and The View also chimed in for hours.

              If a conservative said anything close they wouldn’t last 11 minutes either pulled or banned. Another classic example that supports the REFORM of Section 230 yanking special protections to Tech companies from liabilities no other businesses enjoy.

              Remove OUTDATED special protections for Big Tech, that even Big Media does not enjoy as proven by Nicolas Sandmann sued several media giants and won huge settlements.

              Big Tech ABUSE must not stand…

  5. What great news, the stock price of Apple usually goes down after such fantastic earning reports. Guess that puts a damper on the doom and gloom sayers that went on and on and on and on about Apple stock plummeting to 100$ a share.

  6. It is a long game folks. Apple is showing the world it is constantly innovating and growing the business, revenue, and profits. The stock will follow as has been done in the past time and again. I have been long Apple since 2005 and it is the best investment I have ever made. Never sold a single stock even in the darkest of days. I only keep adding.

  7. the price does not move because Market Makers have set up a parabolic bagger after hours and are harvesting any up movements with high frequency trading to suck the moneyflow. Look at the Level II quotes and the 3 day chart.

  8. And now AAPL has gone negative for the day, after posting world shattering numbers. Astonishing how poor a stock AAPL is. All because Tim Cook does not believing in dividends. The owners of the company DESERVE to share in the profits.

    Instead Tim Cook wants to incinerate cash by stock buy backs.

    There are no words to express my contempt for Tim Cook

  9. Stock Market 101: Wall Street doesn’t control, decide or “set” the price of a stock. Nor does it “reflect” the state of the economy, let alone the state of any company represented.

    For example, the success of Apple (or lack thereof) has no direct effect on the price of Apple’s stock. Rather, when traders are (in general) more interested in selling it than buying it, the price of a stock declines. The opposite is also true.

    If you “Play” the stock market (trade) you quickly discover the only way to make money on a rising stock is to be among the first to buy it (when it is still low). And the only way to avoid losing money on a declining stock is to be among the first to sell it (when it is still high). The net result, folks, is traders don’t watch the company behind the stock. They are watching each other. If a few start selling a stock, the rest rush to sell it, too. If they hear some news (or some analyst’s comments) that they think will cause other traders to react, they will try to be among the first to so react. Thus they become a self-fulfilling prophecy.

    Investors, on the other hand, are interested in the company. They buy and hold for the long term. For them, it’s a savings account with (hopefully) a better return. But because of this, Investors don’t influence price changes in any way — until and unless they sell.

    Wall Street is not smart, stupid or clueless. People who cry, “They just don’t understand Apple,” don’t understand the market. It’s a mob-mentality, pure & simple. They don’t care about you, me or Apple. They only care about each other and any “skill” they may have is nothing more than the ability to predict what other traders might do before they do it.

    In other words, “traders” are like sheep… If a few suddenly start to run, they all run and in the same direction. Only afterward will “analysts” attempt to figure out why.

    What’s the solution for Apple? Minimize their reliance/exposure to traders. So, you begin share buy-backs and bond issues – with an eye toward reducing your risk (from traders) or perhaps one day eliminating it! (Get out of the stock market and go private. All they’d really need is lots of money to fund themselves! Hmmm.)

    I’ll get off my soap-box, now.

  10. Don’t forget last year’s pandemic panic and the resulting irrational exuberance that benefited tech stocks, AAPL included. Reality has just caught up.

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