Apple, Alphabet earnings fuel megacap stock recovery

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Earnings reports from the biggest technology companies show that the group is navigating the tough economic environment better than smaller rivals, fueling a rebound in stock prices and encouraging investors about the outlook for the second half.

Results from companies including Amazon.com Inc, Alphabet Inc and Microsoft Corp have lifted the Nasdaq 100 Index by 11% in July, adding about $1.5 trillion to its market value and putting it on a pace for its biggest monthly advance since November 2020.“The leading companies have been putting up some of the better numbers this season, and their position as secular growth leaders still seems intact,” said Mitch Rubin, chief investment officer at RiverPark Funds.

Apple is showing signs of supply chain improvements in China, which bodes well for the coming period, which are seasonally its biggest quarters, Bloomberg Intelligence analyst Anurag Rana said.The initial reaction to Microsoft’s report was decidedly mixed, after both sales and earnings came in below expectations, hurt by foreign-exchange headwinds, an issue it had warned about in early June.

“We’re still looking for growth, but the number of choices we have for that is rapidly narrowing,” said Patrick Burton, a portfolio manager at Winslow Capital Management, which oversees about $26 billion. “Search is doing much better than other forms of digital ads, so it didn’t see the weakness that Meta or Snap saw,” said Winslow’s Burton. The stock is attractive at about 17 times estimated earnings, he said. That’s below its 10-year average and the Nasdaq 100’s multiple of 21 times.Shares fell 0.1% on Friday but are up 4.6% in July. It is on track for its first positive month since March, as well as its biggest monthly gain since October.

 

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Apple results top estimates as iPhone escapes economic slump - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Apple Inc on Thursday reported profit and sales that beat Wall Street expectations, navigating parts shortages better than predicted and benefiting from unceasing demand for iPhones even as inflation has consumers tightening other spending.
Source: SABCNews - 🏆 37. / 51 Read more »