Three of the most talked about tech stocks (Apple Inc. Facebook and Qualcomm) report Earnings tomorrow (April 28).
Apple remain the hottest of the tech giants and the largest US company and the second largest in the world by market capitalization. At close of business last week Apple topped over $2.2 trillion in market cap. after a stunning 2020, with all sectors of the company outperforming and revenues and earnings per share beating on all counts. The hugely successful, delayed launch of the 5G iPhone range, the success of the iMac’s and iPads as the pandemic gripped and demand for home working hardware soared, and the strong growth in the wearables and services business groups added to a soaring stock price that appreciated over 81% last year and a market cap that added over $1 trillion. Since the successful 4-1 stock split in August the share price has posted lows in September at $104.46, highs in January at $145.00 and currently trades around $135.00 for a conservative 2% gain year-to-date. The current quarter is one of Apples quietest however the consensus is for a strong recovery, with iPhones sales up 43%, to $41.4 billion; iPad sales up 29%, to $5.6 billion; Mac sales of $6.8 billion, up 27%; wearables sales (mostly Apple Watch and AirPods) of $7.4 billion, up 18%; and a 16% leap in services, to $15.5 billion. As Barrons wrote last week¹ “Overall, the Street consensus expects sales of $77 billion, up 32% from a year ago, with profits of 98 cents a share. That would be the fastest top-line growth rate for any Apple quarter since March 2012, when revenues were about half what they are now. And most bullish Apple analysts seem to think their own estimates are too low—a print at $77 billion would likely trigger a selloff in the stock.” Wedbush remain the most bullish of the major analysts with Dan Ives posting a target of $175 for the stock and UBS the most conservative, upgrading the stock to a buy from a neutral at the beginning of the month with a target price of $142. The latest note came last week (April 21) from Morgan Stanley with an overweight rating and a target price of $156.00.
Facebook – also had a stellar 2020 with beats on earnings, revenues, ad sales but a and
Click here to access the HotForex Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.