Apple stock jumped more than 8% on Friday after it reported better-than- expected earnings. The surge added $178 billion to Apple's market cap and helped drive an impressive rebound in the broader stock market. The boost was necessary given that other tech companies disappointed investors this week. Amazon fell about 10% and Meta plunged more than 20%. The key numbers from Apple's earnings report were listed here. Revenue was $90.15 billion, which was higher than analyst estimates. The earnings per share were higher than analyst estimates. The revenue for the iPhone was $42.63 billion, which was higher than analyst estimates. Reuters
The services revenues generated from Apple TV+ and Apple Music, which generated revenue of $19.19 billion in the quarter, were the big disappointment in Apple's earnings results.
Tim Cook warned investors that the upcoming holiday quarter should see decelerated growth as it deals with tough comparables from a year ago.
After a week of disappointing results from its peers, Wall Street is still positive on Apple.
Louis Navellier said in a Friday note that Apple delivered results that gave investors confidence that the world has not changed completely for tech.
The weakness in Apple's services division can be overcome by the upcoming quarters if the US dollar doesn't continue to rise.
It was a bit weak on currency, App Store softness, and the overall macro but should reaccelrate into the December/March quarters which is key for this core revenue stream that should approach $90 billion in annual revenue by 2024.
We would describe Apple's results and commentary around the December quarter as net bullish around underlying demand and help throw out the noise that iPhone 14 upgrades are slowing in this cycle. A key positive dynamic heading into FY23 is the Pro mix which we believe to be 80%.
The price target for Apple was lowered by an analyst to reflect a lower valuation.
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