Apple stock surged as much as 8.1% in Nasdaq trading after delivering all-time record quarterly results and good enough quasi-guidance to avoid the fate of most big tech companies this earning season which have seen their valuations plunge by hundreds of billions of dollars.
Mark Gurman for Bloomberg News:
Apple’s revenue and profit both topped analysts’ estimates. Even with growth expected to decelerate during the current period, investors found enough optimism to send the shares on their biggest one-day rally since July 2020.
The company far outshined Alphabet Inc., Amazon.com Inc., Meta Platforms Inc., Microsoft Corp. and others, which all delivered gloomy earnings reports in recent days, sending their shares tumbling.
With loyal customers still eager to snap up its pricey products, Apple has been seen as an outlier during a punishing tech slowdown. The company also released its latest iPhone earlier in the year than usual, giving the fiscal fourth quarter a greater portion of sales from Apple’s flagship device. But roaring inflation and a broader slowdown in consumer spending, particularly for personal devices, may still be weighing on the company…
The Cupertino, California-based company didn’t provide a specific revenue forecast for the current quarter, continuing an approach it adopted at the start of the Covid-19 pandemic. But analysts estimate sales of about $128 billion, which would be an all-time record.
Apple’s overall revenue grew 8.1% to about $90.1 billion in the fiscal fourth quarter. That beat the $88.6 billion estimate, because of better-than-expected growth in its Mac and wearables businesses. Earnings of $1.29 a share topped the average projection of $1.26.
MacDailyNews Take: Apple’s customers are simply a cut above the rest:
Apple iPhone customers are the most recession-proof smartphone buyers. — MacDailyNews, September 7, 2022
The same goes for Mac, iPad, Apple Watch, and Apple Services customers in personal computers, tablet computers, smartwatches, and subscriptions, respectively. – MacDailyNews, October 13, 2022
The most inflation- and recession-resistant big tech company is Apple, thanks to its superior customer demographics. – MacDailyNews, October 27, 2022
When your money becomes a greater concern, you want to spend it wisely. In China and everywhere, if it’s not an iPhone, it’s not an iPhone. Further, if it’s not an iPhone Pro, it’s not an iPhone Pro. – MacDailyNews, October 27, 2022
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Just from a purely vengeful POV I really still enjoy (aka bombastic cruel chuckle) the use of the word “beleaguered” as applied to anyone other than Apple in the tech trade. Can’t get enough of that satisfaction.
Wow what a day and congrats AAPL longs! Amazing the gains held thru the close. 👍💪
AAPL is still way farther away from all time high which is $182.94.
Apple stock surges is akin to Joe Biden lowering gas prices.
When Apple hits $194.00 from its all time high $182.94, then Apple stock surged.
When gas prices go lower than $2.39/gal, the average price when Biden took office, before Biden’s stupidity set in motion for the skyrocketing prices we had to endure as that dipshit ate ice cream, but have since come down but remain higher priced then when he took office. Then Biden can say the gas prices under him are lower.
However, we have to deal with this dementia riddled liar who just a few days ago said gas was over $5 when he took office. Amendment 25, clean up on aisle America!
Apple has always been a middle / upper income customer focused company. Its Pro/Creative products are purchased by those that justify via income from the tools they use.
What is Apple doing right now?
Apple Watch Ultra: $799
AirPods Pro 2: $249
Soon – HomePod: $199
Soon – MacBook Pro w/M2 series; $1,999+
Soon – Mac Pro w/M2 Ultra and Extreme $2,999+
Apple will be offering professionals and higher-end minded consumers more goods at the high end.
For all we know, Apple has been sitting on AirPods 2 and HomePod 2 and Watch Ultra for a while now until the market showed recession signs, bringing lower volume sales, so make up with higher revenue and margin products to counteract.
Many huge companies are going to announce major layoffs right AFTER the election. They won’t do it right now to help Dems, but it is coming and Apple will have a pipeline of high-end, higher margin products to help navigate through the storm.
Really, really smart.
We all know the economy is in recession regardless the companies try to help the Democrats to win the midterms. The Democrats can’t hide the truth .
AAPL has become the safe choice; Apple keeps making profit in good times and bad. I think investment money in tech will steadily flow toward AAPL. 20 years (even 10 years) ago, AAPL was seen as the risky bet.
There is still a massive appetite for quality products, just take a look a LVMH recent earnings quarter, congratulations Apple shareholders ! 🍎 📈