STOCKS TELEGRAPH

Tag: AAPL STOCK PRICE

  • Apple Inc. (AAPL) stock rises in Pre-Market today: Why is it so?

    Apple Inc. (AAPL) stock rises in Pre-Market today: Why is it so?

    Apple Inc. (AAPL) announced its blockbuster second-quarter earnings results after which the AAPL stock price saw a surge of 2.70% to reach $137.19 a share at the time of this writing. AAPL stock was down by 0.60% at the previous closing. Let’s have a look at current scenarios.

    AAPL stock second-quarter results:

    AAPL stock has recorded tremendous growth in the second quarter of 2021 and has beaten the analysts’ expectations on the top and bottom line.AAPL stock generated $89.58 billion in revenue surpassing the $77.3 billion expected revenue with a whopping increase of 54% year over year. Earnings per share were $1.40 while the expected EPS was $0.99.Revenue generated from iPhone and iPad reached  $47.9 billion and $7.8 billion respectively while the estimated revenue for both former and later was $41.5 billion and $5.6 billion, respectively. Revenue generated from MAC products surpassed the estimate of $6.8 billion to reach $9.1 billion.

    Why AAPL stock showed tremendous growth?

    AAPL stock posted strong hardware sales in the second quarter of 2021. Apple stock recorded huge revenue from the sales of its iPhone 12 launched in September 2020. Being the first iPhone to support the 5G technology proved to be a massive success for the AAPL stock so far. Furthermore, the notion of remote working or learning and work from home following the deadly pandemic has resulted in the huge sales of iPad and Mac of the Apple stock.

    Global Chip Shortage May Hit Apple:

    Due to the increase in the demand for electronic products, giant automakers and tech companies around the globe are facing the problem of the semiconductor chip shortage in the production of new products.AAPL Chief Financial Officer Luca Maestri has warned that the chip shortage is suppressing the sales of iPads and Macs.These both products have greatly contributed to the massive revenue from sales during the lockdown period. Maestri pointed to the decrease of $3 billion to $4 billion in revenue in the third quarter of 2021 due to chip shortage.

    Dividend Announcement:

    Apple’s board of directors has announced the cash dividend of $0.22 per share of its common stock which represents an increase of 7 percent. The shareholders having the record of closing the business on May 10 will be applicable to get dividends on May 13, 2021.

    Conclusion:

    Investors are responding to the second-quarter earnings report by the Apple stock as it showed massive growth in the sales revenue from its various products in the reported quarter.iPhone 12 along with iPads and Macs is the major success of the Apple stock. The semiconductor chip shortage which seems to last till 2022 is the only fear for the tech giant so far. In a nutshell, investors need to analyze all the pros and cons of investing in AAPL stock.

  • Apple (AAPL) or Alphabet (GOOGL): Which is the Better Stock Pick?

    Apple (AAPL) or Alphabet (GOOGL): Which is the Better Stock Pick?

    Apple (AAPL) and Alphabet (GOOGL) are two renowned names all over the world in the tech industry. There is a great rivalry between these trillion-dollar tech giants as both are giving their best shot to innovate as well as to expand their network in the globe through their products and services.No doubt both companies have brought massive returns to their long-term investors and will continue the trend in the future.

    Generally, it becomes difficult to decide the best stock between the two when both tend to keep winning but a deep understanding of the company’s infrastructure, strategies, and developments helps investors to determine which stock is better to add to their portfolio. Let’s look at both stocks to determine which will be the best bet for you in the future.

    Apple (AAPL):

    Apple (AAPL) Inc. is an American multinational technology company that works on products and services related to computer hardware, computer software, consumer electronics, cloud computing, fintech, and artificial intelligence. The stock price has surged about 460% with an increase in revenue from $215.6 billion to 274.5 billion over the past five years. The net income grew to $57.4 billion from $47.5 billion in the same tenure.

    Despite the Corona Virus pandemic, the company’s revenue growth and gross margin from its products remained stable mainly due to its multiple innovative electronic products including Macs, iPhones, iPads Apple watches, Apple TVs, etc. Besides its products, Apple is growing its ecosystem day by day as 20% of revenue was generated from its online services and now it has more than 600 million paid subscribers from all over the world.

    The iPhone 12 series which is the first iPhone series to support the 5G technology could add more hype in the future as rough estimates from its suppliers suggest that it could ship 230 million iPhones in 2021. Moreover, Apple will repeat its innovation strategy by launching new versions of its other hardware products. The company is also working on an augmented reality headset which is expected to launch in the next year followed by a pair of AR glasses in 2023.

    Apple’s not done yet as the tech giant has also been working on the development of electric vehicles.Analysts suggest that Apple will launch its car between 2024 to 2026 and if it happens,it will be a game-changer for the tech giant, but some analysts think that Apple will have to face great competition in the automobile industry.

    Alphabet(GOOGL):

    Google is an American multinationalconglomerate company that provides internet-related services and products which include search engine, cloud computing, artificial intelligence, online advertising computer software, and hardware, etc. The investors enjoyed the massive return in the past and hoping to get more profits from the company in the future.

    There is no doubt that Google is leading over the internet as its search engine has a 90% market share which is about 89% ahead of the secondly ranked Bing. The company has generated 80% of its total sales with $147 billion in revenue in the past year through online advertising services. The company’s leadership is making serious efforts to innovate its services and products and to evolve Google into digital. Google has launched many professional certificate training programs to diversify its ecosystem.

    Google Cloud Platform is the strong competitor of Amazon Web Services and Microsoft Azure now it is ranked third among public cloud service providers. With the evolution of Big Data, the demand for the cloud is increasing day by the day so we can expect that Google will likely generate handsome profit through its cloud services.

    Another important thing to notice about Alphabet as it never pays dividend rather it returns money to its shareholders via a share buyback. Management believes that share buyback is the tax-efficient process to return cash to the shareholders and it is more beneficial for the shareholder to retain and use the earnings for future business growth.

    Conclusion:

    Both tech giants are evolving rapidly and have enough cash in their balance sheets. It is for sure that investors of both companies would be happy in the decade from now, but Apple is the favorite between these two due to its launching iPhone 12 series, AR headsets with AR glasses, and EV car that would prove to be the gamechanger for the stock. On the other hand, Alphabet is facing great competition in online advertising from Facebook.It has shown much growth in cloud services last year but still, it’s a small segment in Alphabet and requires significant effort to compete with AWS and Azure.