Five questions on Apple Inc. Earnings answered

Apple Inc. Earnings answered
Spread the love

Apple Inc. had recently had released its quarter results. But Apple earnings unlike the past reports were not the focus of attention or the number alone is expected to move AAPL stock. Apple earnings according to expert prediction might miss out on expectations.

Logic on divergence is said to be clear, while the whole market, after Apple earnings is to take similar view to value AAPL stock. Investors are more eager on the new iPhone! So going through apple earnings history will help to make the right investment decision. It is on earnings conference call that the report is interested about and not Apple earnings. There are plenty of questions that Apple stock holders have in mind for which they need correct answers.

Some of the FAQs are as follows:

  • Is AAPL in M&A market: Acquisition of Walt Disney Co. by Apple was rumored sometime back. Although such combination does appear unlikely, Apple is quite interested in a buyout whose size is much larger from what it has executed traditionally. M&A was hinted upon for acquisition and the company spokesperson, declared eagerness to look at acquisitions of different sized companies. Investors are definitely more interested to know about Apple’s M&A ambitions.
  • Launch of new iPhone: The anticipated question here is about Apple disclosing the details of its new iPhone for which it is gaining market share already prior to its release. However, investors are eager to know about it. Possible announcements are likely to move Apple stocks. If there are experienced delays in its launch for any reason, then it will only unnerve those investors interested in AAPL stocks for the short term.
  • Performance of Services Business: Services revenue is considered to be one basic metric having the ability to move Apple stocks. In the last 5 years, Apple sales, exclusive of the iPhone have been consistent bizarrely and non-iPhone growth is found to be ineffective. iPad replaced iPod and also got faded thereby offsetting development in Apple Music along with other initiatives. Beyond iPhone, Apple does require real growth for improving Apple earnings in multiples that are assigned with AAPL stock. This metric is likely to be viewed closely by investors.
  • After earnings, how AAPL stock is to be played: AAPL stock post earnings is not much expected with regards to its movements. Weakness noticed in iPhone is likely to be chalked to consumers eager for the latest release. However, the business besides the iPhone sales is not large enough. Hence, with iPad sales declining unexpectedly, there has not been noticed any change with regards to Apple stock in the long term.
  • Strategy with Qualcomm: Investors do find this question relevant to Qualcomm, Inc. when compared to Apple stock. After royalty payments were stopped by Apple, QCOM shares reported fall. A protracted battle does not mean much for Apple, given its relative market strength; a win will not do much harm to AAPL stock. However, a loss is likely to cause problems for QCOM stock. Investors are more interested with Apple’s story

Getting answers to these questions, the investor can be clearer about his investments in Apple Inc.

Related posts

Leave a Comment