Homepage / Technology / The world's richest company - Apple - is getting a free pass from Wall Street
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election


The world's richest company – Apple – is getting a free pass from Wall Street

Apple is set to report earnings after the bell on Tuesday, a report that will most likely show that the $774 billion behemoth has even more money in the bank.

To be precise, Apple is expected to report adjusted earnings of $1.57 per share on revenue of $44.89 billion in the June quarter, according to analysts polled by Thomson Reuters. That’s a 10.7 percent jump in EPS and a 6 percent jump in revenue from this time last year.

That’s an incredible sum — except that most analysts do not seem to be worried about whether Apple beats or misses expectations for this quarter. In fact, analysts have gone so far as to write they just “want to get [this quarter] over with.”

“It’s what I’d call a lame duck quarter,” Nehal Chokshi, an analyst at Maxim Group, told CNBC’s “Squawk Box” on Monday. “It doesn’t really matter what they say or do. And this is because everybody knows that the June quarter results, you know — we’re at the end of the product cycle. And everybody gives them a pass for whatever results they’re going to provide.”

Analysts who released research in FactSet all focus on what Apple has planned for September, with the next generation iPhone. The iPhone 8 — marking the tenth anniversary of the original model — is expected to introduce radical new features like brighter, edge-to-edge screens and augmented reality capabilities.

Plus, there’s a slew of people with sixth-generation iPhones — one of Apple’s best sellers — that might be due for an upgrade.

Together, that means factors like guidance on margins in the September quarter could be more valuable than anything Apple has done this spring, according to analyst Andy Hargreaves, senior research analyst at Pacific Crest Securities.

Indeed, the September quarter is so much more important than Tuesday’s result that Hargreaves said it might even be a good thing if Apple misses estimates.

“Oddly, stronger-than-expected results may be a contrarian indicator, as it would suggest consumers are not holding off purchases in anticipation of the iPhone 8,” Hargreaves said.

CEO Tim Cook has telegraphed that people might be doing just that — holding out on purchasing the iPhone 7 in light of leaks about the iPhone 8.

But even looking at the guidance on future margins and revenue might not be a catalyst for investors, Hargreaves wrote. That’s because the upcoming iPhone screens are made from a notoriously tricky material that could delay its launch past the end of the September quarter.

“While not anticipated by us, we believe any ‘hiccups’ in Jun results, would be glossed over as investors focus on the upcoming iPhone launch,” wrote Michael Olson, senior research analyst at Piper Jaffray. “We do not expect investors will be overly unnerved by an outlook that is slightly below consensus, given the widespread news flow around potential for next gen iPhone delays.”

Abhey Lamba, ‎senior technology analyst at Mizuho Securities, concurred, writing: “[W]e believe investors could look past the softer guide in anticipation of the upcoming product cycle.”

So if June quarter results don’t move the needle, and September quarter guidance might not either, what does that leave for investors to latch to?

Aaron Rakers, ‎managing director at Stifel Nicolaus, said data points like demand in China and the growth of Apple’s services business will continue to point to the company’s long-term health. Technology investor Paul Meeks of Sloy, Dahl & Holst, told CNBC’s “Worldwide Exchange” on Monday that he’s worried the company doesn’t have another “trick” beyond the iPhone 8.

Some traders are pointing to Apple’s stock-move trends after earnings for clues.

Chokshi said he’s watching the Apple supply chain, at least for the next three months.

“Everyone’s delaying their purchase for the next iPhone,” Chokshi said. “And then for the September quarter guidance: At the end of the September quarter …. you have the new iPhone that’s released. But it’s always supply constrained. So whatever guidance they’re providing, that’s a complete reflection of the supply they’re going to have on hand. So it never tells you anything about what the real demand is. What really will matter is the December guidance three months from now.”

Source: Tech CNBC
The world's richest company – Apple – is getting a free pass from Wall Street

Comments are closed.