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No in the next 48 hours it is about to go down apple and tesla stock are both reporting earnings over the next 48 hours so what i want to go through here with you guys here they our apples are expected numbers okay the analysts are expecting then we’ll go through tesla’s expected numbers then i’m going to give you my opinion on it these companies can beat these
Earnings if so why if they’re gonna miss why and i also want to get into am i gonna buy more shares if these stocks go down or our sell-off if they go up a bunch and all those type of things if you don’t already know apple is by far and away my wife’s biggest position in her account i think they’re costly somewhere around 160 170 and then i just bought around
$18,000 of tesla’s stock it’s kind of like my spec stock i’m playing for the next five to ten years so importan stocks to us and honestly apple is a company that almost every single person is affected by okay the apples wait on the markets if apple moves down in a big way a lot of times the entire market will move down a lot of times if apple moves up it can help
Boost the whole market also if you own a mutual fund if you have a 401 k or something like that there’s a good chance apple shares are in there okay or you might own apple shares directly or you might even own a semiconductor supplier whose biggest customers probably apple guys so a very very important company so we’re gonna get into all this will do apple first
Then we’ll do tests so they won’t do my opinion on these two companies if they’re gonna miss or beaten those type of things okay so apple revenue is expected to be fifty two point three billion dollars for the quarter that would be up around fifteen percent year-over-year okay which is pretty nice growth okay that’s pretty nice growth there for apple fifteen plus
Percent growth of how big this company already is to be grown like that is nice where it really gets impressive as eps okay so analysts are expecting the company do two dollars and 18 cents that’s versus last year they did a dollar sixty-seven this is a massive massive raise up this is a thirty percent plus number year over year okay alerts are expecting their
Eps to go up over 30 percent year-over-year guys that’s a massive massive move there okay so then we’ll definitely have to talk about that number if that’s beatable there okay the revenue guidance is always going to be very important for apple okay that’s always one of the most talked about things in regards to apple a tolls are expected somewhere around 50 fifty
Nine point five billion dollars of revenue guidance last year they did fifty two point five so that would be up around thirteen percent year-over-year there as far as iphone units this is always the number that’s probably talked about in more than anything even more than eps or revenue iphone units iphone units analysts aren’t expecting crap for this past quarter
Okay the only expecting around one percent growth year over year in iphone units okay so this is probably the lowest bar i’ve seen apple have in a long long time in regards to iphone units they aren’t expecting anything a 1% rise there no this is not an analyst thing this is just something i want to bring you guys attention to apple needs less than a 10% move up
In stock price i think it’s around a 7% or 8% rise from from today’s valuation to be the first public company in history to hit a one trillion dollar market cap okay so tomorrow night if apple report some really good numbers and that stock starts moving up man all its gotten even or eight percent gained basically to hit a one trillion dollar market cap which would
Be just a cool thing for the stock market because it has never ever been a public company that has hit a one trillion dollar valuation it would be pretty neat guys just for the stock market overall so those are the apple expected numbers now we’re gonna get into tesla and then we’ll get into my opinion on both of these stocks already guys now i want to get into
What is expected from tesla and also what some questions our analysts are probably gonna ask on that conference call now we’ll get into my opinion on both these stocks if i’m gonna buy more sell off after the earnings and kind of like if they can beat numbers and whatnot so tesla was expect to do revenue of around four billion dollars that’s versus a year ago they
Did around 2.8 billion all right that’s a 42 percent year-over-year okay a big big number but tesla’s in major growth mode right now 42 percent revenue growth year over year eps is expected to get much uglier year over year so this quarter they’re expected to do negative two dollars and eighty one cents per share versus the same time last year they did a dollar 33
Year ago why is that because they’re ramping model three it’s a very costly thing to do okay whenever you ramp a vehicle like this especially in the scale tesla’s doing it it’s a very very costly proposition plus they’re gonna have some employee employment restructuring going on because they laid off a lot of employees especially have some of their solar divisions
And things like that that they felt like we’re kind of you know jobs just you know they didn’t need and whatnot so the lot of those charges are going into this court or something to keep in mind there now next quarter analysts are expecting eighty-eight percent revenue growth year over year yes you heard me right eighty-eight percent revenue growth is expected
Year-over-year in the next quarter okay so that would be very very interesting to hear what you know tesla has for guidance around that revenue number for next quarter because that is huge guys that is absolutely huge all right so three questions i think analysts are gonna kind of ask in this conference call one is model three ramp and what’s the demand so a lot
Of talk about is demand falling for model three you know and can they really ramp over 5,000 vehicles we’ve seen them get up to five thousand vehicles can they get up to a 6,000 7,000 8,000 maybe even a 10,000 number there and once again the demand like that’s been a big focus from some of the short sellers out there is there as much demand you know well it’s one
Minute they’re trying to point the finger at they can’t produce enough cars the next minute they’re trying to point the finger at that you know the company doesn’t have demand or something like that it’s pretty funny so it’ll be very important to hear what you know management has to say about that this is even a more important question my personal opinion how is a
China in europe factory gonna get paid okay how are these factories these are going to be billion dollar-plus projects okay probably multi-billion dollar projects so one in china and the one in europe what does management have to say about this okay the china one’s already been announced in the europe one could probably be announced within the next few months so
What does management have to say about this like who who’s got to pay for this okay we don’t test that doesn’t have as much money left on that balance sheet and the way they’ve been losing money like like you can’t go down to zero okay so they’re gonna either need to raise debt they’re gonna need to do a capital raise of some kind where the issue some more stock
Maybe they do joint venture where somebody else builds it and you know tesla just leases that factory from them we don’t know what what the situation is but it’s gonna be very important i really hope that analysts kind of ask that question and dig in there because like however these factory they both are be multi-billion dollar factories who’s gonna pay for this
Okay and maybe there’s a wild card that tesla’s just gonna become unbelievably profitable overnight which i don’t know if that’s you know really gonna play out that way but if that’s if that happens i mean maybe they could pay for cash but man that’s pretty it’s pretty unrealistic okay and also the other question is when will energy scale so energy so much focus
Around tesla has just been on the cars the bottle 300k that’s been the whole focus going on right now and that’s where you know the bulls and the bears honestly most of times spend their time you know focusing this could mess up everybody’s numbers out there okay bulls n bears energy this is a big wild card out there okay if energy starts to scale in a major way
They have a lot of pent up demand but they haven’t really even been trying to sell that aggressively they took that out they went out of the home depot stores mainly because they already had so much demand they weren’t doing enough supply management only have so much time they only have so much money to go around right now okay so they’ve been focusing on the
Car side of the business but when is energy gonna scale in a major way i think that’s a big question because going into 2019 if energy scales in a major way that that revenue growth could get accelerated in a massive massive way it just depends on if tesla has some money to fund that it has ahead and have the resources to fund that you know hold the whole energy
Side of their business to really get that ramping and my goodness if they can really get that ramping plus you have the model three ramp and let’s say they get to a place where they’re doing you know eight thousand to ten thousand model threes per week we’re talking about it could be a crazy year in 2019 okay so no that’s what it is expected from channel from
Tesla analysts and that’s also the questions i expect analysts to really you know drive into during the conference call now let’s get into apple and tesla do i think they’re gonna beat am i gonna sell am i gonna buy anything like that already guys now for the fun part to get into what i expect from these companies and if i will be by more selling off or any of
Those things after this quarter okay so first off let’s talk about apple i think apples numbers are very very beatable okay why did i forget the y in very i think apples numbers are very beatable here’s why okay fifteen percent revenue growth is expected for this past quarter 30 percent eps growth why are those numbers beatable well two reasons okay one a espys
On iphone have exploded they’re well over $100 more expensive than the previous year okay so that is a big factor if they can just keep iphones around the same or get that 1% raise that anil also expected the revenue is gonna explode there the eps the profitability of those phones is much higher because they’re bigger dollar amount okay on the margins are somewhat
Similar so needless to say like it’s pretty pretty beatable then on top of that services just grew in the last quarter over 30 percent if services can grow you know 25 to 30 percent that’s massive for this company because those numbers are starting to get really big and services now that’s actually their second biggest business going forward okay and they’re buying
Back massive amounts of shares on top of all this okay which helps the eps dramatically so when you factor in all those things i think revenue and eps are definitely very beatable numbers i think there’s a good chance they could meet and with an impressive beat on both of those lines we’ll just have to see okay this quarter in next quarter or the last super-impressive
Quarters in my opinion in terms of revenue growth and eps growth especially in terms of revenue growth why well basically the iphone 10 will start to lap okay that thousand dollar iphone that’s going to start to lap in the next year now and also the services i expect some deceleration in the 2019 of services revenue okay this 30% clip that you know they’ve been doing
And whatnot i do not think that’s sustainable over the long term i think i think a 20% or somewhere around there is probably sustainable at least over the next year but there’s 30% plus i do not think this can keep up over 2019 if it does that’s a huge surprise to me i welcome it i just don’t see that happening okay so in terms of apple this quarter we’re in right
Now in next quarter i think of the last super-impressive quarters i think next year they can still grow eps by you know a double digits let’s say 10% plus but revenue growth i think you’ll be in the single digits throughout 2019 or somewhere around there okay maybe even a flat ash to be honest okay which leads me into my next point 2019 is gonna be super lame for
Apple in my opinion i think this is gonna be a lean year for apple stock though sometimes you know it’s just lame ear for apple stock because of their numbers and whatnot i think that’s just how 2019 is gonna end up playing out however 2020 could be a very exciting year for this company why because the 2020 iphones could be the supercycle of iphones because it would
Be the 5g iphone we’re not 100% sure if the 5g iphones are coming out which basically they would be announced in september or october of 2019 okay but basically all the sales would happen throughout 2020 all right the 5g iphone is the next supercycle when they come out with that everybody’s gonna want to jump on that 5g bandwagon because if you know anything about 5g
Versus 4g they’re really not even comparable okay this speeds everything you can do across the board is unbelievable with the 5g iphone so i think in 2020 could be a real interesting year if they end up announcing the the 5g iphone at some point you know toward the end of 2019 2020 could get really really exciting guys because we haven’t seen a major super cycle
On the iphone since iphone 6 which was a bigger device you really have to have something huge in order to get a super cycle going ok can’t just be oh there’s a new cool feature here new cool feature there bhaiji is a massive ok it’s the biggest thing to happen the iphone since they literally increase the size the iphone so i think 2020 can set up as a super cycle
If that’s even the year they come out with the 5g iphone which i think they can okay we will not sell regardless if the stock moves up big after earnings it goes to truly you know i’m mark cap we won’t sell like this is a long term hold for us i hope i hold 2019 is week for apple stock i really do i hope it’s weak i would love to add more and more shares i don’t
Know any apple shares at any of my accounts okay my wife is by far her biggest position i don’t know any shares of my my accounts i would love to have a huge position of apple in 2019 so i’m hoping i’m keeping my fingers crossed that apple stock actually moves down on these earnings it just has a week 2019 so i can buy throughout the year okay that’s kind of what
I’m hoping there let’s give it a test so tell us what i’ll be flat-out honest i don’t know if they’re gonna beat these earnings this is my first earnings holding this stock okay i don’t have a good enough idea yet because i’m you know just got in the stock that uh can they beat numbers or missed numbers i don’t know okay so i’m not gonna put my head out there and
Say yes they’re gonna be no they’re gonna miss i you know all to be honest i don’t know this is my first earnings actually holding the stock okay but i will go out there and make this statement okay i expect revenue growth have over 50% for the next three years so this company analyst only expect revenue growth over 50% for the this year we’re in okay i expect 50%
Plus for the two remaining years after that meaning 2019 and 2020 analysts have somewhere around 42 percent revenue growth for 2019 i expect it to be over 50 percent okay in the following year why two reasons tesla energy has to rent okay this is gonna ramp and that’s gonna that’s gonna kill everybody’s numbers out there that you know has low expectations for for
Tesla in my opinion okay model 3 will continue to ramp they’ll be able to produce more and more per week alright as word gets a word-of-mouth gets out there more people want to buy tesla’s and things like that okay as you see more on the streets and you see some of the cool features it has and whatnot i think and especially as a $35,000 model actually is available
Okay that’s gonna be massive for this company okay so those are two massive things also you’re gonna have you know the tesla semi coming with so semis are not going to be cheap okay those are gonna be very expensive models so it’s not like they need to move mass amounts of units of the semi if they can just move you know a few thousand units a year like that’s
A massive massive number for the company those are gonna be very highly priced also in 2020 the roadster is coming we could have the model y coming which is probably the biggest thing other than model 3 that this company has going forward model 3 in tesla you know the energy products are huge but model why the mass suv guys that is gonna be off the charts okay
Because a lot of people like myself that will love to have a test of suv but at the same time we don’t want to pay a hundred thousand plus dollars which if we got the tesla model x it’d be a hundred thousand plus dollars in my opinion i don’t feel like spending a hundred thousand plus dollars on suv okay i’m fine with spending 40 50 maybe even 60 thousand dollars
In suv i’m not spending a hundred thousand dollars plus so the model y can be their answer for customers like myself who want a nice suv that’s electric but don’t want to spend a hundred thousand plus dollars like you know the tesla model x is okay so the stock has a lot of calvess going for it over the next few years okay i hope it moves up the reason being is
Honestly i don’t wanna buy more shares this is my spec stock that i’m holding for the next five ten years i’m not buying more shares of stock a rule i learned okay this is a secret i’m gonna let you know right now that no one knows okay when i first got bought gopro shares i bought that as a sex-talk it was a very small position of mine and then i dropped and i
Started building a bigger bigger position till it was also my biggest position in my portfolio okay that was stupid you should never turn a spec stock into a major investment i refused to do that with tesla regardless of how much it drops okay i don’t care if it goes out $200 i don’t care if it goes down 150 dollars a share i’m not adding more shares of stock
Regardless okay it’s a spec stock and i learned a lesson we go for okay so i hope it moves up that would be awesome because you know like i said i’m not buying any more shares i hope it moves up the interesting thing is there’s a lot of facebook money out there right now okay a lot of investment funds a lot of high growth investors have sold off a facebook where
Is that money gonna go we know it’s not going to netflix talk okay netflix is down another 5% plus today so we know all that growth money that’s coming from facebook it’s not going in a netflix stock so we have all this growth money for all you know that people that have sold off shares investment fund managers that love the high growth companies those companies
Growing revenues at 40% plus clip where’s that money gonna want to flow okay there’s a good chance it could flow to tesla why because there’s a test there’s a company that has a massive revenue increase coming over the future years even if they don’t hit my number the analysts are still expecting this company grow 42% plus next year okay so where’s that facebook
Money gonna go where does that facebook money gonna go a lot of it could flood and tesla we’re gonna have to see okay i will not sell regardless of what tesla shares though i don’t care if we went to five hundred dollars a share i wouldn’t sell okay that’s just that’s where i’m at with that so i hope you guys enjoyed this let me know in that comment section if
You’re planning on buying apple stock or tesla stock i would love to hear from you guys if you hold either of those stocks what are your expectations for these earnings i would love to hear from you guys in that comment section as always make sure you follow me on instagram if you have not already thank you for watching and have a great day
Transcribed from video
Apple and Tesla Earnings Preview By Financial Education