Friday's Headlines: Apple Surprises Everyone With Positive Growth

Friday's Headlines: Apple Surprises Everyone With Positive Growth

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️
NOW +9.2%
AX +6.9%
NLS +6.2%
FB +5.4%
AMZN +4.3%

Moving Down ⬇️
EB -8.0%
DLTH -8.4%
IMAX -8.7%
EVH -10.0%
TRUP -10.9%

1. Amazon reported on a massive quarter in its earnings call last night, posting overall sales growth of 26% as customers flood to use its services during lockdown. Digging down into the specifics, the company posted 24% growth in its e-commerce business, 33% growth in its AWS cloud division, and a whopping 44% jump in advertising and other sales. CEO Jeff Bezos did warn investors to "take a seat" before announcing plans to spend all of the company's profits — estimated to be at least $4 billion — for the coming quarter on COVID-related expenses like increased worker pay and the purchases of protective gear. However, with expected sales growth of as much as 28%, we won't see Amazon slowing down any time soon. Read more here.

2. The other big hitter reporting earnings last night was Apple, who managed to surprise analysts by actually posting positive sales growth of 1% in the last quarter. Wall Street had been expecting the company to post a drop in sales of up to 6% for the period due to its factories in China being affected by the pandemic as early as January. It appears that sales of subscription services such as streaming television content helped to bolster the numbers, with the overall number of subscribers to paid apps and services on Apple's devices now sitting at 515 million. However. CEO Tim Cook did warn that it was impossible to forecast for the current quarter given the uncertainty created by the virus, pushing shares down marginally in after-hours trading. More here.

3. Atlassian also reported a bit of a mixed bag after the bell last night, perhaps falling victim to increased expectations thanks to being one of the few stocks that may actually benefit from stay at home orders. They posted EPS of $0.25 on revenue of $411.6 million, representing increases of 19% and 33% year-over-year respectively. In very reassuring news to investors, the company announced over $2 billion in cash and investments on the balance sheet, as well as free cash flow for the quarter of $140.3 million, showing its ability to weather the current storm. They were also one of the few companies not to withdraw its guidance which may have cost them. Expectations of $0.17 - $0.22 a share on $400 - $415 million in revenue fell below analysts’ expectations and the stock fell after hours. Read more about it here


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