UPDATE: Further drop of about 1.5% this morning. Proof of the adage "Buy on the rumor, sell on the news."
But Apple's stock price fell yesterday by 1.49%. The profit surge was announced after the market had closed - with a warning from Apple that they didn't think the earnings momentum would continue at it's present rate. We will see how it opens this morning.
"Device maker leads tech giants in continued streak of dominance"
Apple Inc. posted the biggest spring-quarter profit in its 45-year history, leading a streak of record-setting earnings for technology companies even as the pandemic continues to weigh on the global economy.
Not to be overlooked, Google parent Alphabet Inc. and Microsoft Corp. also said Tuesday that their quarterly earnings excelled, underscoring how the pandemic has shifted life and work online and strengthened some of the world’s biggest and wealthiest companies.
Apple earned $21.7 billion in profit for the three-month period that ended in June, while revenue rose 36% from a year earlier to $81.4 billion, beating expectations.
The Cupertino, Calif., iPhone maker is on pace for its best fiscal year ever with a projected profit of $86 billion for the 12-month period ending in September, according to an average forecast of analysts surveyed by FactSet. That would be about 51% better than last year’s record; analysts a year ago were predicting what now seems like a paltry 11% gain.
“This quarter saw a growing sense of optimism from consumers in the United States and around the world, driving renewed hope for a better future and for all that innovation can make possible,” Apple Chief Executive Tim Cook said. “But as the last 18 months have demonstrated many times before, progress made is not progress guaranteed.”
Google parent Alphabet more than doubled its quarterly profit to $18.5 billion after the pandemic drove online buying of groceries and other products, as well as demand for streaming video, bolstering the company’s digital advertising business.
Microsoft posted record quarterly sales after winning new customers for its booming cloud-computing business, Teams workplace-collaboration software and videogame offerings. The software giant said revenue rose 21% to $46 billion. Net income was $16.5 billion.
The three companies, which now have a market value of around $6 trillion, logged about $57 billion in profit, or about $620 million a day, during the latest quarter.
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