🍎An Apple Right in the Middle of Amazon.
Apple & Amazon released their financials a confirmation that the eagle roaming the global supply chain skies is yet to land.
Hey, Hisa fan,
Some of the week’s most awaited financials were released yesterday.
The Apple.
Apple Inc, the world’s largest tech company by market valuation saw its shares drop by over 3% on Thursday after earnings for its fiscal fourth quarter fell below analysts expectations for the first time since 2016. The company’s CEO Tim Cook attributed the drop in earnings to larger-than-expected supply constraints on iPhones, iPads, and Macs.
The Company posted a September quarter revenue record of $83.4 billion, up 29% year over year, and quarterly earnings per diluted share of $1.24.
Revenue equalled $365.8 billion in the fiscal year ended September 25, up from $274.5 billion in 2020.
iPhone remained the top revenue generator for the company with a total of $38.87 billion in sales vs. the $41.51 billion estimated by analysts a 47% year-over-year.
The Mac’s revenue was flat averaging $9.2 billion, a 2% year on year, but still topped as a new all-time high for the Mac.
iPad revenues stood at $8.25 billion vs. $7.23 billion estimated by analysts, up 21.4% year-over-year
Apple's Services business has been growing steadily for years, so it's not surprising that this quarter's revenue of $18.3 billion was an all-time high, as well.
During the Apple event earlier in the year, Apple released new devices in what the company termed as their most “sophisticated” devices yet. The next watch will be to see how these new products such as the new iMac and the iPhone 13 series will affect the company’s earnings over the next fiscal year.
So what’s next? - Apple’s earnings remain a concern to analysts and the company as the global supply chain effect continues to hit on all corners for supply. Despite the new products, Apple and its suppliers depend on the heavy supply chain industry to have their products get to the final consumer.
A domino effect was felt today as Apple supplier shares in China saw their shares drop during trading as investors reacted to Apple’s sales report.
Amazonia
Jeff might have gone to space but sure Amazon isn’t following anytime soon. Amazon, which is the world’s largest e-commerce company, said its entire fourth-quarter profit could be wiped out because of a surge in the cost of labour and fulfilment.
Amazon generated $110.81 billion in revenue in the third quarter, missing Wall Street estimates of $111.6 billion in revenue for the quarter.
Revenue for 3Q21 rose 15%, down from the 37% growth the company posted in 3Q2021.
Sales in online stores rose 3% from a year earlier to $49.9 billion, while physical store revenue increased 13% to $4.27 billion.
Amazon Web Services topped estimates, with revenue jumping 39% to $16.11 billion, while analysts expected sales of $15.48 billion.
Amazon's shares fell as much as 4% in extended trading.
Without the hefty profit from Amazon Web Services, Amazon.com Inc would have recorded a loss for the quarter, this would have been historic for the company, coming a few months after long time CEO Jeff Bezos stepped down.
Over the past year, Amazon's shares have provided a total return of 8.9%, well below the S&P 500's total return of 40.5%.
Big Question….So, is there an Apple right in the middle of Amazon? - Technically, until the global supply chain crisis restores sanity, Amazon is right in the middle of Apple’s distribution.
In other news, here are earnings we’re watching today on U.S stock markets.
What Cowries are we looking at today?
Momentive Global [NASDAQ:MNTV] - The parent company of SurveyMonkey has agreed to be bought by customer service platform operator Zendesk (ZEN) for $4.13 billion in stock. Zendesk tumbled 18.5% in the premarket, while Momentive Global lost 5.7%. Let’s see how this deal goes.
Chevron Corporation [NYSE: CVX] - Chevron has already jumped 2.1% in the premarket after posting its highest quarterly profit in 8 years amid surging energy prices. Chevron earned an adjusted $2.96 per share for the third quarter, beating the $2.21 consensus estimate, with revenue also beating Wall Street forecasts.
How about you? What are you watching today when markets open? Let us know on the Hisa App.
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Disclaimer: This newsletter does not constitute investment recommendations. Investors and the general public are advised to do their own research before making any investment decision.