Five quarters ago, Apple stunned investors when it said it would no longer disclose the number of iPhones it was selling - a clear signal that selling had slowed dramatically. Investors sold off the stock... then bought the dip with gusto sending AAPL sharply higher with the narrative changing that Apple was pivoting from a product to a service company.
Then four quarters ago, on January 3 2019, Apple once again shocked the market when it slashed its revenue guidance by 8% for only the first time since this century (naturally, blaming China). As AAPL stock tumbled, it reveberated across all capital markets, and even prompted a flash crash cascade in various currency pairs, especially the pound, lira and yen. However, just like a quarter earlier, Apple's "shock" was quickly overcome, and the after hours plunge actually marked the max pain for longs, with the stock surging 130% since then as its PE multiple rose from 13x to 23X. And to think all it had to do was slash guidance.
Three quarter ago, as largely expected, Apple reported that iPhone sales had indeed slumped, but the reason why the market kept bidding up the stock, was the company's effervescent outlook, which while declining on a year over year basis, was well above sellside consensus, dispelling fears of a growth slump and boosting hopes that Apple is successfully transitioning to a services company. Of course, Apple's then brand new $75 billion stock buyback repurchase authorization only helped with the agressive multiple expansion
Then two quarters agi, Apple stock surged once again, when not even the company's disappointing iPhone sales and service revenue miss was enough to impact its solid earnings and stellar guidance. As a result, quickly regained its status as the world's most valuable company amid expectations that not only service revenues (especially with the company's $4.99 Apple TV launch on deck) continued to rise, but amid renewed optimism for higher unit sales after the iPhone 11's launch in September, despite the phone's not having major upgrades beyond an additional camera on the back.
Finally, last quarter, the stock now on autopilot, accelerated higher as the company beat both top and bottom line expectations, and more importantly, indicated that it sees no adverse consequences from the ongoing trade war, projecting stellar holiday quarter revenues despite yet another decline in iPhone sales. The catalyst: continued growth to the company's service offering and rising expectations for an upcoming 5G supercycle.
more,,,,,,,,,,,,,,,,
http://www.zerohedge.com/markets/apple-surges-after-smashing-expectations-projecting-stellar-quarter-despite-coronavirus?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
MY summary,, if iphoine sales are down and they are moving their cash stream to services!!!!!! How can they sell a service to people who are not buying their phones???? HMMMMMMMMMMMMM lol
Creative accounting weeeeeeeeeeeeeeeeee
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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