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Apple (NASDAQ:AAPL) the stock rose 3% overnight after analysts concluded that its quarterly results showed “resilience”.
Apple earned $19.4 billion, $1.20 a share, on revenue of $83 billion for the three months ending June. Profits were down 10% from 2021, but revenue was up nearly 2%.
Results were better than expected, although the “whisper number” for earnings was higher, $1.32 per share. The big news is that CEO Tim Cook said he expects “revenue acceleration in the September quarter” and that the macro economy isn’t hurting Apple.
The news was significant because Apple is by far the largest US company in the world by market capitalization, with a value entering July 29 of over $2.54 trillion. His lead over second place Microsoft (NASDAQ:MSFT) is now greater than the total market capitalization of Metaplatforms (NASDAQ:META).
What’s good for Apple
Apple has become what General Motors (NYSE:GM) was in the 1950s. What’s good for the Cupertino company is good for the United States.
Cook’s earnings call was filled with assurances that things are looking up.
He said the strains caused by the Covid-19 lockdowns in China were “slightly lower” than expected. He expects supply constraints to lift in the current quarter. He said sales in China fell just 1% year-over-year and the company was deliberately “continuing to hire”.
The soothing words, combined with the good news of Amazon (NASDAQ:AMZN), made it possible to identify all Nasdaq. The market is led by five tech giants whose cloud data centers drive the economy. Microsoft, Apple and Alphabet (NASDAQ:GOOGNASDAQ:GOOGL) all analysts satisfied. Only Meta failed to measure up, but that failure has already factored into the stock, down 53% on the year.
What Happens Next for AAPL Stocks
With big tech earnings discounted and most Wall Street estimates considered fairly accurate, attention is now turning to the impact of higher interest rates and the third quarter.
If tech can continue to fight deflation and drive down costs, this quarter may not be half bad.
As of the date of publication, Dana Blankenhorn held long positions in AAPL, MSFT, AMZN and GOOGL. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
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