Apple Escapes Big Tech Doom

Today is Friday, October 28, 2022.

New to this newsletter? Sign up here.

Apple Escapes Big Tech Doom

The financial earnings results for Apple (Nasdaq: AAPL) were mixed, resulting in shares of the tech company ticking up 0.38% in after-hours trading on Thursday.

Financials: Apple reported earnings of $1.29 per share and revenue of $90.1 billion; both were better than expected.

iMiss: Revenue for the iPhone hit $42 million and services revenue reached $19 million; both were better than the same period last year, but both were lower than expected.

Hitting a Record: Revenue went up 8%. This was a record high for the September quarter. Mac revenue also went up year-over-year.

Stock Price: Apple’s stock is down 20% this year, and down 3% in the last 30 days.

Final Thoughts: In a week when most of the big players in the technology industry posted negative earnings, Apple found a way to be the one bright spot.

Notables

Notable Earnings Today: Exxon Mobil (NYSE: XOM), Chevron (), AbbVie (NYSE: ABBV), NextEra Energy (NYSE: NEE), Colgate-Palmolive (NYSE: CL), JinkoSolar Holding (NYSE: JKS), Imperial Oil (NYSE American: IMO), NextEra Energy Partners (NYSE: NEP), Charter Communications (Nasdaq: CHTR), AllianceBernstein (NYSE: AB), Aon (NYSE: AON), Arbor Realty Trust (NYSE: ABR), Bloomin' Brands (Nasdaq: BLMN), Chart Industries (NYSE: GTLS), Grainger (NYSE: GWW), LyondellBasell (NYSE: LYB), Newell Brands (Nasdaq: NWL), Sanofi (Nasdaq: SNY).

Notable IPOs Today: Spring Valley Acquisition Corp. II Class A Ordinary Shares (Nasdaq; SVII).

Notable Equity Crowdfunding Campaigns Ending Today: Rancho Relaxo (Mainvest), Smoove Xperience (Netcapital), Urvin.Finance (Wefunder), Rentberry (StartEngine), TradeAlgo (StartEngine), infiniRel (Wefunder), Bear Hug Brewing Company (Mainvest).

Notable Economic Events Today: Core PCE Price Index / PCE Price Index (8:30 a.m. ET), Employment Cost Index (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Pending Home Sales (10:00 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).

Amazon's Weak Holiday Forecast

Photo by Wicked Monday / Unsplash

The short-term financial outlook for Amazon (Nasdaq: AMZN) is problematic and the stock declined by 12.73% in after-hours trading on Thursday.

Financials: Amazon reported earnings of 28 cents per share, which was better than expected. But its revenue only hit $127.1 billion, which was lower than expected.

Outlook: The company expects net sales to be between $140 billion and $148 billion in this fourth quarter. This was lower than expected.

Cloudy: Revenue for Amazon Web Services (AWS) jumped 27%, but that growth was lower than expected.

Driving Income: Amazon’s investment in electric vehicle company Rivian (Nasdaq: RIVN) is paying off in the form of $1.1 billion in income during the quarter.

Final Thoughts: The fourth quarter is the holiday shopping season. The fact that Amazon has a weaker-than-expected sales forecast for the fourth quarter is bad news.

Pinterest Sees Big Growth

Shares of Pinterest (NYSE: PINS) jumped 9.64% in after-hours trading on Thursday after the social media platform posted better-than-expected earnings and revenue.

Final Thoughts: The number of daily and monthly active users was also better than expected and fueled growth. While other social media companies are posting bad results, Pinterest is thriving.

Trends to Watch

Steady: Crypto Markets Remain Stable Following GDP Release, Bitcoin Stays Over $20K (CoinDesk)

Healthy: With A Breakout On The Line, Gilead Reports Massive Cancer Drug Sales (Investor’s Business Daily)

Customer Approved: T-Mobile Raises Subscriber Forecast Again After Strong Quarter (Bloomberg)

Consolidation: StartEngine Acquires SeedInvest from Circle (Crowdfund Insider)

Cleaning House: Elon Musk now in charge of Twitter, CEO and CFO have left, sources say (CNBC)

Apple Escapes Big Tech Doom