Apple announces share split after record-breaking quarter - Does it matter?

TL;DR

Apple's third quarter earnings report shows significant growth in revenue and profit, driven by strong sales of their products and services. Additionally, Apple plans to implement a stock split to make their shares more accessible to investors.

Transcript

g'day and welcome to this week's video my name is robert gowdy from consortium private wealth and this week we're going to have a look at the third quarter earnings report from apple it's not a stock i've covered off terribly much in the past obviously it's a lot written about this business but this video has come about given that one of my clients... Read More

Key Insights

• 💪 Apple's third quarter earnings demonstrate their continued growth and stability, driven by strong sales across various product categories.
• 👨‍💼 The services and wearables businesses, including Apple Watch and AirPods, have been particularly successful, showcasing the potential for recurring revenue streams.
• ⚾ The stock split is a strategic move to make Apple's shares more affordable and accessible to a broader base of investors.
• 💦 Apple's integrated ecosystem, where products and services work seamlessly together, contributes to customer loyalty and retention.
• ❓ The market reaction to Apple's earnings report highlights investor confidence in the company's performance during the COVID-19 pandemic.
• 👨‍💼 Apple's market cap surpassing $1.8 trillion reflects the scalability and attractiveness of internet-based businesses.
• 💗 Mac and iPad sales have also shown improvement, indicating a growing demand for devices suitable for remote work and learning.

Questions & Answers

Q: What were Apple's third quarter earnings and how do they compare to the previous year?

Apple's third quarter earnings amounted to almost $60 billion, representing an 11% increase compared to the previous year. This growth signifies strong financial performance for the company.

Q: How did the market react to Apple's earnings report?

Following the earnings report, the market saw a 10.5% increase, indicating positive sentiment towards Apple's performance. This reaction could be attributed to the increasing number of people working and learning from home during the COVID-19 pandemic.

Q: What factors contribute to Apple's continuous growth and success?

Apple's seamless integration of its products and services, including the iPhone, AirPods, and Apple Watch, plays a significant role in retaining customers. Additionally, the steady increase in paying subscribers for Apple's services contributes to their ongoing revenue streams.

Q: What is the purpose of Apple's stock split and how does it work?

Apple plans to implement a four-for-one stock split, which will make their shares more accessible to a broader range of investors. Each shareholder will receive three additional shares, effectively reducing the share price by dividing it by four. However, the total value of the company remains the same.

Summary & Key Takeaways

• Apple's earnings for the third quarter reached nearly $60 billion, an 11% increase compared to the previous year, with a profit of over $1 billion.

• The market cap of Apple has reached $1.842 trillion, showcasing the scalability and potential of internet-based businesses.

• Apple's services and wearables business, including the Apple Watch and AirPods, experienced notable growth, while Mac and iPad sales also showed improvement.