Today is Friday, May 5, 2023.
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Apple's Surprise iPhone Sales
A mixture of good financial results and new updates resulted in shares of Apple (Nasdaq: AAPL) ticking up by 2.49% in after-hours trading on Thursday.
Financials: Apple reported earnings of $1.52 per share in the past quarter and revenue of $94.8 billion; both were better than expected.
Good: Revenue for Apple Services hit an all-time record in the quarter. iPhone Revenue reached a March quarter record, which most people did not expect to happen.
Bad: Revenue for Mac, iPad, and wearables dipped year-over-year. Mac lagged as revenue dropped over 30%.
But: Despite the ups and downs, Apple authorized a $90 billion stock buyback and raised its quarterly dividend for the eleventh year in a row.
Stock Price: Apple is already up 32% this year. The stock is up about 1% in the last 30 days.
Final Thoughts: In the face of economic challenges, Apple’s global business seems to have improved in the last year. But if consumer spending drops, then Apple could face more problems.
Notable Earnings Today: AMC Entertainment (NYSE: AMC), ACM (), Warner Bros. Discovery (Nasdaq: WBD), FuboTV (NYSE: FUBO), EOG Resources (NYSE: EOG), The Cigna Group (NYSE: CI), Enbridge (NYSE: ENB), International Seaways (NYSE: INSW), Qurate Retail (Nasdaq: QRTEA), Globalstar (NYSE American: GSAT), AES (NYSE: AES), American Axle (NYSE: AXL), Arbor Realty Trust (NYSE: ABR), Brookfield Renewable (NYSE: BEP), Cboe Global Markets (BATS: CBOE), Dominion Energy (NYSE: D), Fluor (NYSE: FLR), Goodyear Tire (Nasdaq: GT), Huntsman (NYSE: HUN), Johnson Controls (NYSE: JCI), Plains All American (Nasdaq: PAA), E.W. Scripps (Nasdaq: SSP).
Notable IPOs Today: ACELYRIN, INC. Common Stock (Nasdaq: SLRN), TechPrecision Corporation Common Stock (Nasdaq: TPCS), Alchemy Investments Acquisition Corp 1 Units (Nasdaq: ALCYU).
Notable Equity Crowdfunding Campaigns Ending Today: Wild Honey Bistro (Mainvest), It’s Baked Baby (Honeycomb).
Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET).
DraftKings (Finally) Eyes Profitability
Photo by Tim Hart / Unsplash
Shares of DraftKings (Nasdaq: DKNG) jumped 9.81% in after-hours trading on Thursday after the sports betting company posted better-than-expected financial results.
Financials: DraftKings reported a loss of 51 cents per share in the past quarter and revenue of $770 million; both were better than expected.
Powering the Story: Following layoffs, an 84% increase in revenue, new customers, and higher customer retention, CEO Jason Robins says that he is “confident DraftKings is well-positioned to achieve profitability on an Adjusted EBITDA basis in the near-term.”
Final Thoughts: The stock is up 92% this year. But can it achieve profitability if the economy faces a recession?
Carvana Surges After High Gross Profit Per Unit
Carvana (NYSE: CVNA) surged by 25% in after-hours trading on Thursday after posting financial results that were well-received.
Final Thoughts: Carvana is headed in the right direction with a 61% increase in gross profit per unit. The company now expects to hit positive adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the next quarter. The stock is down 85% in the last 12 months.
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Trends to Watch
Bumpy Ride: Lyft stock sinks as forecast falls short of estimates; new CEO takes aim at Uber (MarketWatch)
Fintech Winner: Block’s Earnings Beat Expectations, Driven by Cash App. The Stock Is Rising. (Barron’s)
Signs of Crypto’s Rally: Investors cheer as Coinbase beats Q1 expectations (TechCrunch)
Special Delivery: DoorDash Revenue Beats Estimates on Strong Demand For Deliveries (Bloomberg)
Same Old, Same Old: Bitcoin, Ether Trade Flat After Mildly Encouraging Jobs Data (CoinDesk)
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