Apple Faces Another Sales Drop

And, Block's $1 Billion stock buyback.

Today is Friday, November 3, 2023.

The Early Bird Index today is 53.33.

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Apple Faces Another Sales Drop

Shares of Apple (Nasdaq: AAPL) dropped 3.38% in after-hours trading on Thursday after the technology giant reported mixed financial earnings results.

Financials: Apple reported earnings of $1.46 per share in the past quarter and revenue of $89.5 billion; both were better than expected.

Details: It was a September quarter revenue record for iPhone. It was also an all-time revenue record in the services category, which brought in $22.3 billion. Apple’s gross margin was slightly better than expected.

Yes, But: Revenue for Mac came in lower than anticipated at $7.61 billion. There was also a decline in sales for Wearables. Plus, sales in China were weaker than projected.

Powering the Story: This marks the fourth straight quarter of sales declines for Apple.

Stock Price: Apple is up 41% this year, including a 3% jump in the last 30 days.

Final Thoughts: Investors expected more out of Apple’s earnings, although the services business can give investors hope about Apple’s long-term prospects.

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Notable Earnings Today: Bloomin' Brands (Nasdaq: BLMN), W.P. Carey (NYSE: WPC), fuboTV (NYSE: FUBO), AMC Networks (Nasdaq: AMCX), Enbridge (NYSE: ENB), Cboe Global Markets (BATS: CBOE), Cardinal Health (NYSE: CAH), EOG Resources (NYSE: EOG), Icahn Enterprises (Nasdaq: IEP), Cinemark (NYSE: CNK), Fulgent (Nasdaq: FLGT), Plains All American (Nasdaq: PAA), Restaurant Brands Internal (NYSE: QSR), American Axle (NYSE: AXL), Brookfield Renewable Partners (NYSE: BEP), Church & Dwight (NYSE: CHD), Dominion Energy (NYSE: D), Fluor (NYSE: FLR), Gartner (NYSE: IT), GrafTech International (NYSE: EAF), Healthcare Realty (NYSE: HR), Koppers Holdings (NYSE: KOP), Protolabs (NYSE: PRLB), Scripps (Nasdaq: SSP), Sempra Energy (NYSE: SRE), Telus (NYSE: TU), U.S. Silica (NYSE: SLCA).

Notable IPOs Today: Carbon Revolution Public Limited Ordinary Shares (Nasdaq: CREV), Lexeo Therapeutics, Inc. Common Stock (Nasdaq: LXEO), Shimmick Corporation Common Stock (Nasdaq: SHIM), Alkermes plc Ordinary Shares Ex-distribution When Issued (Nasdaq: ALKSV), Mural Oncology plc Ordinary Shares When Issued (Nasdaq: MURAV).

Notable Equity Crowdfunding Campaigns Ending Today: Cartel Brewing & Blending (Mainvest), RAD AI (Wefunder), LiveRetail (Netshares), Tribel (Wefunder), Bravo Golf (Wefunder).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI (10:00 a.m. ET).

Block's $1 Billion Stock Buyback

Block (NYSE: SQ) surged by 16.33% in after-hours trading after the fintech company posted better-than-expected financial results, raising its guidance, and announcing a $1 billion stock buyback to raise the price of the stock.

Final Thoughts: While Block is down nearly 32% this year, there is now renewed hope for the company’s future.

DraftKings Gets Big Revenue Jump

DraftKings (Nasdaq DKNG) jumped 7.60% in Thursday’s after-hours trading after the company reported better-than-expected financial results, including a 57% increase in revenue.

Final Thoughts: The sports betting company is already having a monster year, with the stock up 162%. However, DraftKings still hasn’t reached profitability yet.

Trends to Watch

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