Apple Earnings Recap: iPhone Sales up, Stock Dips on China Weakness

The business won’t look too different from how it operates today. Cashing in some of those chips at such a high profit was prudent for Buffett. However, I don’t think it’s worth weighing too heavily for individuals deciding whether or not to own Apple. The reality is that Berkshire’s reasons for selling Apple likely have nothing to do with you.

• The reports indicate that Apple may have already completed the bulk of the engineering work on the processor that would power such a car, apart from fine-tuning the software that would be running the vehicle.
• Like many analysts on Wall Street, Chatterjee is looking for evidence that AI features will drive a bump in iPhone sales.
• The global smartphone market was reportedly worth $274 billion last year, and it is expected to clock an annual growth rate of 7.6% through 2030.
• All market data (will open in new tab) is provided by Barchart Solutions.
• While Apple currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

Apple is too good a business to sell, but investors should probably wait to buy until its valuation cools off or there is more certainty in Apple’s growth prospects. Selling more services and outsourcing its supply chain has made Apple a more efficient business with a far higher return on invested capital (ROIC). But that doesn’t mean Buffett’s company no longer believes in Apple’s potential. Buffett has repeatedly praised Apple and called it a better business than American Express and Coca-Cola, two of Berkshire’s longest-standing investments, earlier this ironfx review year. Docusign has been deepening its relationship with Salesforce and Microsoft and is being integrated into their tools like Slack and Microsoft Teams, which bodes well for its future. The company could offer an attractive risk-to-reward proposition for speculative investors.

The NRF is predicting consumers to spend nearly $1 trillion across the November and December holiday shopping season. Ivan Feinseth shares the stocks he thinks will make big profits from all the sales… If Apple was staring at a significant growth opportunity in the years ahead, that valuation might make sense. Consensus analyst estimates call for revenue to rise at an annualized clip of 4% between fiscal 2023 and fiscal 2026. From a purely competitive standpoint, services are what create the dominant Apple ecosystem.

Performance Overview: AAPL

This lines up with management’s long-term guidance of 7% sales growth and 8% operating income growth from 2026 to 2028. While Apple currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys. The stock decline came amid a broader sell-off in mega-cap tech stocks following earnings reports from Microsoft and Meta Platforms, with shares of both tech firms down about 5%. “What else is going on there is that the installed base of active devices reached an all-time high,” he says. “We had the Top 2 top-selling smartphones in urban China,” Cook says, referencing a third-party report.

Industry

Additionally, its services difference between gitlab and github business could also spike big-time with the addition of metaverse-related devices such as a headset that could help it sell more applications. Apple already has an installed base of more than 1.8 billion devices. So Apple could eventually dive into both the hardware and the software side of the metaverse.

But maybe the most impressive thing of all is how Airbnb is attracting users to its platform. My colleague Jon Quast noted that a mere 9% of users booked a stay during the first nine months of 2020 because of an ad. This means 91% of users booked with Airbnb because they were familiar with the brand/services, or they were suggested by someone the user knew. Airbnb has brand staying power that could eventually rival Apple.

Cook shouts out the final earnings call for Apple’s outgoing CFO, who is moving to a new role.

Apple Inc. was founded in 1976 and is headquartered in Cupertino, California. Apple released fiscal 2024 second-quarter results (for the three months ended March 30, 2024) on May 2, and shares of the company popped nearly 6%. The jump in Apple’s stock price was driven by the company’s better-than-expected numbers.

At a monstrous $3.2 trillion market cap, Apple (AAPL -0.06%) is currently the second-most valuable business on the face of the planet. This was propelled more recently by a stock price that has soared 62% in just the last three years (as of June 21), a gain that more than doubles the rise of the Nasdaq Composite Index. However, if we view things with a fresh perspective today, shares aren’t cheap. Apple (AAPL -0.06%) recently closed out its fiscal year 2024 with fourth-quarter earnings, and the market responded with a shrug. The stock is down a few percentage points from before its earnings report, but it’s nothing to sound the alarm about. That’s not bad for a stock carrying a whopping $3.3 trillion market cap.

Apple has a five-year average forward earnings multiple of 28, which is a small discount to the tech-laden Nasdaq-100 index’s earnings multiple of 29.5. That’s much needed right now considering that Apple’s rival Samsung is already reaping the benefits of offering AI-specific features on its latest Galaxy flagship phones. The South Korean giant points out that half of the customers purchasing the Galaxy S24 smartphone family were doing so because of the integrated AI functions. More importantly, 60% of the people buying the S24 devices have been regularly using the AI functions on offer. The company’s top line was down 4% year over year, while the bottom line fell by a penny. Apple’s revenue from its largest product line, the iPhone, fell to $46 billion from $51.3 billion in the year-ago period.

However, a closer look at Apple’s potential catalysts indicates that the tech giant could turn out to be a solid investment over the next five years as well. All market data (will open in new tab) is provided by Barchart Solutions. Ever feel like you missed the boat in buying the most successful stocks? The Apple investment has generated over $100 billion in capital gains for Berkshire Hathaway. Throughout 2024, Buffett has begun to realize a lot of these gains, raising Berkshire Hathaway’s cash position to more than $300 billion.

Those service revenues represented about 24.5% of total sales in 2024, up from 22.2% in 2023. GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced activtrades forex broker analysis by advertisers.

Payment processor Block, known as Square until a name change in late 2021, has been a long-term winner since going public. If you’ve ever paid for anything at a local merchant’s shop, odds are, you’ve been exposed to Square, which offers a range of financial services to small businesses and merchants. It’s no surprise that when companies dominate their industries, their stock prices tend to have long-term success. It is growing, though not at the rate it was, and that growth is likely priced into the stock already. As with many market sectors, Apple is likely to be impacted by the dramatic turn of events in Washington D.C. The new administration is determined to reshore manufacturing, and become more inwardly-focused. Apple, as a prominent global manufacturer, is going to have to navigate that situation, and it is way too early to determine how that will work out.