Apple Earnings! My Opinion!

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Apple has reported earnings and their stock went up very nicely today up well over 4% today on a day when the markets were actually down okay so this is very rare when you see apple make a big upward move and the markets actually go down and it speaks volumes to apple because you know there was there were such low expectations going in for apple here and you know

A lot of companies that have reported good numbers their stocks have actually still gone down here in this earnings perry has just been a nasty earnings period where the numbers have been phenomenal the majority of companies are report or beating numbers like 80 plus percent of companies have beat numbers but so many stocks have fallen it’s been absolutely insane

It’s one of the weirdest earnings periods i’ve ever seen in the ten years i’ve been in the stock market so let’s look at these numbers into depth here and i’m going to kind of show you like like how strong some of these numbers are right now for apple and it’s like mind-blowing to me how strong they are really okay so when you look at apple like the first thing

You’re gonna want to look at obviously is what’s the revenue number okay the revenue for this quarter was up 16% year-over-year up 16% year-over-year that’s like wow to me because this is a company that’s priced like they’ve got no growth okay this is a company that’s what a p/e for p of 12 or somewhere around there for p of 11 and this is a company that has 16%

Revenue growth okay this is a growth company double-digit strong double-digit growth company right now okay so phenomenal phenomenal next thing you like to look at with apple is our eps a 30 percent year-over-year their earnings per share were up 30 percent year-over-year part of that is because all that extra revenue another part of that’s because lower taxes

Another part of that is because they’re buy back that’s a ridiculous number guys up 30 percent year-over-year oh my goodness listen once again this is a company that is priced like they’ve got no growth like this is not a growth company but then you look at the facts behind this company you then you look at the revenue then you look at the eps and there’s no other

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Way you can split it apple is still a growth company okay maybe they’re not quite the growth company they once were but they are still a phenomenal growth but you don’t get a 16% revenues up in eps up 30% and not be a growth company apple is a growth company i think then the narrative kind of needs to change there okay iphone units that’s the next thing people

Are always going to look at i phone because that’s the biggest part of their business iphone units we’re up three percent year-over-year my take on that is it’s not deaf okay like hey people thought you know oh like phone can’t grow any more units are gonna go down but let’s talk they still iphone units still went up three percent so it’s not you know gangbusters

Growth or something like that but it is still growth an iphone units it’s not like death and they’re like their sales numbers are gonna go down and down and you know they reach peak as many iphones or they can sell know there’s still some growth there okay might not be a ton but there’s still some growth next thing you want to look at is iphone revenues once again

Is the biggest part of their business so iphones very important iphone revenues up 14% okay boo-boo-boo-boo-boo what that means basically is they’re getting a lot more money per i phone okay because units were only up three percent iphone units sold were only up three percent but the revenue that actually came through the door was up 14% which basically means are

Getting a lot more money per iphone obviously you know with iphone 10 which by the way was their most popular selling iphone in the quarter even though analysts talked about it like it was not you know a relevant phone or something that was their top-selling iphone and they probably they sold more iphone tens than any other smartphone company sold of any other

Flagship product in that past quarter so the iphone 10 has been a smashing success whichever way you want to look at it maybe it didn’t do you know record numbers from apple’s perspective but it absolutely is still the top-selling device they have okay and it’s still killing what everybody else is doing so phenomenal number their services revenue this is this in

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My opinion it within about two years will be the most important part of the business you know people will look at i phone units secondary i think services revenue will start being the main focus of the company probably starting about a year or two from now services revenue was up 31 percent year-over-year guys of 31 percent year-over-year that is sick okay that

Is sick the services revenue which is they get from apps and cloud and all that type of stuff right that’s all money that is like so much straight profit okay they get so much froth that and this is part of the reason why you know their ep s can cope 30% because they got services revenue up 31% guys that’s a sick number there and you’ve got to think about services

You know that’s not slowing down it’s actually accelerating the growth ok this was you know was something that was growing nice 18% 20% i think in the last quarter 21% now they jump up to 31% so growth is actually accelerating that business and then you could think about down the road you know as apple music can becomes more and more popular then you think about

Once what happens if they get into something where they’re competing with netflix i competitor video streaming service which is very possible it could launch within a year – you know the possibilities are endless for what apple can do there and continue to grow that services revenue next thing you always want to look at with apple is what’s the china revenue this

Is probably gonna be their biggest market you know i would say probably within three to five years they’ll be bigger than the americas market china’s so you always want to pay attention to what’s going on in china so much opportunity for the company to grow over the next five years it’s insane revenue there was up 21% that is very very nice guys revenue up 21%

China there’s still obviously you know tons of interest in china you know despite all the competitors in china which is probably the china is probably the most competitive smartphone market literally in the world with how many competitors are there how many have you know direct distribution how many you know phones are actually manufactured in china you know from


All these different competitors and being able to be sold there for very cheap prices it’s a very competitive market but but apples brain is so strong guys and that’s why we see revenue up 21% this is the china will be the strongest market for apple over time is just gonna take another three four years or so and then you won’t always look at you know they got all

This money coming in they got all those money coming in like crazy what are they doing with that money well they announced they’re gonna do another hundred billion dollar share buyback yes i know that number sounds insane but for apple is just another day on the street right 100 billion dollar buyback then they also are going to up the dividend so that is gonna be

A very good thing for shareholders that will you know as they buy more and more shares back as long as they can keep increasing that net income this eps is growth is going to be you know phenomenal maybe they won’t be able to always grow 30% but still with a huge buyback on and you know the the business expanding they’re gonna probably build a you know keep this

Eps going up you know 15 20 percent and whatnot and it’s just it’s probably the easiest money stock literally in the stock market i think apple is probably the easiest money you can make as far as if you’re looking at it from the perspective of what’s your risk you’re taking in that stock versus what’s your reward you’re getting out it’s probably the least risky

And you know in relation to what though the reward upside is there you know them google and facebook are kind of the stocks that i look at you know the next three to five years are almost guaranteed money especially apple i mean it’s just it’s the easiest money you can make in the market but those are my feelings around apple let me know in that comment section

What you guys thought of their numbers i would love to hear from you as always anyways thank you for watching and have a great day

Transcribed from video
Apple Earnings! My Opinion! By Financial Education

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