After the US market closed on January 27, Apple Inc (Apple) announced its quarterly earnings for the first quarter of 2021 (1Q21). The company compiles its fiscal year from October 1 of every work year.
Before the report was released, Apple shares have elevated for past one week and climbed from US$130 to US$143 per unit. The news release was upbeat despite Nasdaq 100 Composite fell 355 points on Wednesday close.
For the 1Q21 season, Apple has booked the historical highest earnings above US$100 billion over three months. The reported earnings of US$111.4 billion is 21 per cent higher than the same quarter on year-on-year basis. Earnings per share is at US$1.68 compared to US$1.41 estimate.
On August 28, 2020, Apple shares went into a stock split of one-to-four ratio and the market prices re-started trading at US$140 per unit after the split.
Currently, the market prices have reached this top and seem to be ready for another new hike.
To date, the market capitalisation of Apple’s stock is estimated at US$2.4 trillion and that’s higher than the whole combined worth of crypto currencies trading in the current market.
Simply based on the abovementioned statistics, we believe the Apple stock has strong potential to stay optimistic and gain further upside.
Market grapevines say Apple will announce the initiation of building electric vehicles (EVs) sometime in 1Q seasons before the end of March. If you reckon Apple has moved into a bottle neck and face difficulty in adding the revenues, then the addition of the EV industry will be a perfect plan to add the icing on their cake.
After Joe Biden became the US president on January 20, a new bill of US$1.9 trillion has been submitted to the US Congress for approval as stimulus. We forecast this stimulus package will roll out sometime in February and the hot monies will kick up the US equity market again.
Hence, there is no fear in 1Q seasons of seeing a sharp fall in stock market since Biden is working hard to window dress his first 100-days honeymoon period.
In the coming weeks, the Nasdaq Composite Index may face some bearish trend but the focus will still be well staked on the growing stocks among Facebook, Apple, Amazon, Netflix, Google and Microsoft.
Among the general trend of component stocks moving into a correction, the above companies that are releasing their earnings report on positive gains will continue to stand firm.
February will be an interesting month to see recovery and higher prices when the new stimulus is being rolled out.
Stay tune.
Dar Wong is a market veteran with more than 30 years of experience. The opinion is solely his own. He can be reached at dar@alaa.sg.
The post Apple makes historical earnings appeared first on Borneo Post Online.