Apple’s iPhone Sales Decline

And, Amazon's disappointing outlook.

August 02, 2024

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Today is Friday, August 2, 2024.

The Early Bird Index today is 70.36.

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Apple’s iPhone Sales Decline

While sales for the most popular Apple (Nasdaq: AAPL) product declined, good financial earnings helped the stock tick up by 0.57% in after-hours trading on Thursday.

Financials: Apple reported earnings of $1.40 per share in the past quarter and revenue of $85.8 billion; both were better than expected.

Details: Sales reached a record for the quarter. The Mac, iPad, and Services categories saw tremendous growth during the period.

Yes, But: Sales for the iPhone declined from $39.6 billion last year to $39.2 billion this year. Overall product sales in China also decreased.

Early Bird’s Nest Egg Gains: Apple's iPhone sales are down this year because the smartphone market is becoming increasingly saturated. Consumers are also holding onto their phones for longer periods.

Final Thoughts: Despite declining iPhone sales, Apple’s stock is up 17% this year.

Notables

Notable Earnings Today: Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), Frontier Communications (Nasdaq: FYBR), Squarespace (NYSE: SQSP), Church & Dwight (NYSE: CHD), LyondellBasell (NYSE: LYB), Magna (NYSE: MGA), Brookfield Renewable Partners (NYSE: BEP), Cboe Global Markets (BATS: CBOE), Asbury Automotive (NYSE: ABG), Fluor (NYSE: FLR), Plains All American (Nasdaq: PAA), AdvanSix (NYSE: ASIX), ArcBest (Nasdaq: ARCB), Ares Management (NYSE: ARES), Atmus Filtration Technologies (NYSE: ATMU), Berry Global (NYSE: BERY), BrightSpring Health Services (Nasdaq: BTSG), Chart Industries (NYSE: GTLS), Cinemark (NYSE: CNK), Enbridge (NYSE: ENB), ESAB Corp (NYSE: ESAB), Essent Group (NYSE: ESNT), Fulgent Genetics (Nasdaq: FLGT), Healthcare Realty (NYSE: HR), Imperial Oil (NYSE American: IMO), Interface (Nasdaq: TILE), Moog (NYSE: MOG.A), Newmark Group (Nasdaq: NMRK), Northwest Natural (NYSE: NWN), Owens & Minor (NYSE: OMI), Perrigo (NYSE: PRGO), Piper Sandler (NYSE: PIPR), PPL Corp (NYSE: PPL), Protolabs (NYSE: PRLB), SNDL (Nasdaq: SNDL), Twist Bioscience (Nasdaq: TWST).

Notable IPOs Today: Xtrackers Artificial Intelligence and Big Data ETF (Nasdaq: XAIX).

Notable Equity Crowdfunding Campaigns Ending Today: Hear.say Brewing and Theater (Honeycomb).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET), Factory Orders (10:00 a.m. ET).

Amazon's Disappointing Outlook

Amazon (Nasdaq: AMZN) fell 6.88% in after-hours trading on Thursday after the e-commerce giant posted mixed financial results.

Financials: Amazon reported earnings of $1.26 per share in the past quarter, which was better than expected. But revenue came in lower than expected at $148 billion.

Details: AWS segment sales grew 19% to $26.3 billion.

Outlook: The company said that sales in the current quarter will be between $154 billion and $158.5 billion, which is lower than expected.

Final Thoughts: Hopefully Amazon’s e-commerce sales can improve later in the year during the holidays.

Intel Suspends Dividend

It wasn’t just that Intel (Nasdaq: INTC) reported bad financial earnings results on Thursday, but the company also suspended its dividend and announced a 15% layoff, sending the stock down by 18.90% in after-hours trading.

Final Thoughts: Intel’s stock was already down 39% this year.

Profitable: Coinbase Stock Rises On Revenue Beat, Jump In Crypto Activity (Investor’s Business Daily)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.