Apple stock heads for all-time high after earnings smash Wall Street expectations

[brooklynite]

Source: Fortune

Apple had a much better quarter than Wall Street anticipated, as consumers proved resilient despite the COVID-19 pandemic. Apple's stock jumped 6% in after-hours trading to over $400, which would be an all-time high if it holds up.

Apple's revenue increased 11% to $59.7 billion for the three months ended June 30, the company's fiscal third quarter of 2020. Analysts had expected revenue to drop 2% to $52.6 billion on average. And earnings per share of $2.58, up 18%, crushed the average forecast of $2.07.

The afterhours stock price jump held even after Apple CFO Luca Maestri disclosed on a call with analysts that this year's new iPhones would likely be delayed "a few weeks" due to challenges in the supply chain.

The surprise growth, including in iPhone sales, came as the U.S. smartphone market contracted 25% overall in the last quarter, according to research firm Counterpoint. But in many parts of the world, consumer shopping has improved since the worst of the shutdowns in the early spring. And Apple has a robust e-commerce operation selling phones online.

Read more: https://fortune.com/2020/07/30/apple-earnings-q2-2020-aapl-stock-shares-all-time-high-results-iphone/

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Apple also announced a 4:1 stock split effective August 25

[ItsjustMe]

1. Right to Repair

[bucolic_frolic]

2. It's an economy of six stocks plus essentials

FAANG plus TSLA, food, energy, medical.

How do we keep throwing Trillions at maintaining lifestyle essentials without inflation when GDP contracts 33%? Something is way off in that equation.

[mahatmakanejeeves]

3. Following a split on a 7-for-1 basis on June 9, 2014.

So for every share of AAPL you held back in May 2014, you'll have 28 shares in another month.

[brooklynite]

4. I think that brings my purchase price per share (after previous splits) to...15c.

[mahatmakanejeeves]

5. I paid more. I had a limit order in place back in 2001 or thereabouts for something like $15.

It didn't quite get that low, so the order was never executed.

I should have upped my offer.

I did end up buying a lot of stocks that went in the opposite direction. Ask me about Nortel and Washington Mutual.

On second thought, don't.

For some odd reason, I never bought any Enron. I don't know how I missed out on that.

[whistler162]

9. Been there and did that

looked at AAPL when it was at or near its low and didn't buy. Bought a couple of stinkers instead. But, that is life. For every stinker, cough....Worldcom, there is Corning in 2002.

[mahatmakanejeeves]

6. What lies behind Apple's 4-for-1 stock split

Perspective: What lies behind Apple’s 4-for-1 stock split

Link to tweet

Business • Perspective

What lies behind Apple’s 4-for-1 stock split

Stock splits might be out of fashion on Wall Street, but they make sense for a company that makes consumer products such as iPhones and laptops, and that wants to give retail investors a financial interest in its success.

By Allan Sloan
Columnist
July 31, 2020 at 7:30 p.m. EDT

Apple Inc. has become an immensely successful company by going its own way and disregarding conventional wisdom. And its announcement Thursday that it’s splitting its stock 4-for-1 is a classic example of that.

Why? Because unlike other companies in what I call the Thirteen-Digit Club — firms such as Amazon and Google’s owner, Alphabet, with total market values of more than $1 trillion — Apple is trying to keep its stock price low enough for people to be able to buy a few shares without having to take out a second mortgage.

Or, as Luca Maestri, Apple’s chief financial officer, put it during a Wall Street conference call, Apple wants “to make our stock more accessible to a broader base of investors.”

Big Tech is worth even more the day after congressional drilling

Let me explain — and I’ll also explain why Apple’s stock split, which takes effect near the end of August, goes against conventional wisdom on Wall Street.

{snip}

I don’t think that splitting its stock has increased Apple’s overall market value, just as I don’t think that not splitting has decreased Amazon’s or Alphabet’s.

But Apple has given a lot of people who are not rich a chance to own a piece of its action. I think that Amazon and Alphabet would be smart to do that, too — but they’re not retail-oriented firms, like Apple. So I don’t think that’s going to happen.

Disclosure: For the past few years, I’ve been giving each of my grandchildren an Apple share as a birthday present. For conflict-of-interest reasons, I’ve never owned any Apple shares other than those earmarked for my grandkids. I currently own 10 shares, soon to be 40 shares, that I plan to give away four shares at a time.

Allan Sloan
Allan Sloan is a columnist for The Washington Post. He is a seven-time winner of the Loeb Award, business journalism's highest honor.

[brooklynite]

7. Yesterday it blew through the roof to $425, a 10% increase

[catsudon]

8. by extension

TSMC or TSM(NYSE) should go up, it is the world's most valuable semiconductor company. they can make 5 nm chipset that no one else can do consistently. they stop selling to China as they was asked to, being a Taiwanese company. They provide the chipset to apple.

it will be difficult for other companies to catch up.