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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