, seeing a small revenue growth to $58.3 billion. The company also approved a $50 billion increase in its share repurchase program and pulled guidance for the quarter ending in June.Dan Ives, managing director of Wedbush Securities, says Apple is in a better position than investors feared.
"I would categorize this as a small victory in a dark environment. I mean, investors, we're expecting another one to two billion further miss on iPhones. And if you look at the services business [for Apple] … combine that with China, this is, in my opinion, better than feared. And I think not giving guidance is prudent and I think many investors were not expecting that.
"We've heard from, in this earning season, other companies that have any kind of exposure or any kind of business in China, including Comcast from this morning, where they talked about certain positivity and seeing the workers go back into the workforce and getting back into productivity. So, China is sort of a little glimpse of the future and I think that's certainly a positive; services certainly is a big bump.
"I don't think it's necessarily all that bullish that the CEO says, you know, one month into the quarter we're not even going to give a guess as to what the business looks like for the other two-thirds of this quarter But, on the other hand, a $50 billion buyback is probably a little below what people were looking at.
"I do believe that Apple if you think about where they're going, think about everything around 5G, wearables, health and wellness, streaming services, all these, I think will ultimately create earnings growth with a buyback — that was impressive what they did with the buyback today. I think this should grow earnings at 10% to 15%, very similar to some of these other large-cap names. I've been a tech investor my entire life.
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Source: BusinessInsider - 🏆 729. / 51 Read more »