|Bid||327.08 x 1100|
|Ask||327.00 x 1300|
|Day's Range||321.38 - 327.85|
|52 Week Range||160.23 - 327.85|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||25.98|
|Earnings Date||Apr. 27, 2020 - May 03, 2020|
|Forward Dividend & Yield||3.08 (0.97%)|
|Ex-Dividend Date||Nov. 06, 2019|
|1y Target Est||297.31|
The Daily Crunch is TechCrunch's roundup of our biggest and most important stories. Apple has worked in recent years to lessen its dependence on the iPhone, in part through services and smaller electronics. SpaceX has launched yet another batch of 60 Starlink satellites -- its third production batch of the orbital communication spacecraft, and its second batch this year alone.
Apple is set to announce its Q1 2020 earnings on Tuesday, with analysts looking for improvements to sales in China.
Global equity markets edged higher on Wednesday on strong results from Apple and others but concerns about the coronavirus outbreak in China dampened investor enthusiasm, keeping a safe-haven bid in gold and the dollar alive. A Chinese government economist said the outbreak could cut China's first quarter growth by one point to 5% or lower as the crisis hits sectors from mining to luxury goods. Strong results from Santander helped bank stocks in Europe as gains in Apple and Boeing lifted shares on Wall Street, but a spate of disappointing results from AT&T and Advanced Micro Devices Inc , among others, weighed on equities.
(Bloomberg Opinion) -- AT&T Inc.’s leadership says proudly that it’s delivering on its promises. Investors aren’t sure if they even like those promises.Fourth-quarter results released Wednesday once again revealed how AT&T is struggling to justify CEO Randall Stephenson’s costly decision to turn a strong wireless company into a riskier communications and entertainment conglomerate. Earnings per share beat analysts’ expectations, thanks to a subsiding price war among the U.S. wireless carriers. But AT&T’s pay-TV operations continued to be a drag, losing 1.2 million subscribers during the period, nearly double the amount analysts figured. That brought total video disconnections for the year to 4.1 million, far outpacing cord-cutting at rivals such as Comcast Corp. Meanwhile, investments in the HBO Max streaming-TV app — which will face fierce competition when it launches in May from Walt Disney Co.’s Disney+, Comcast’s Peacock, Apple Inc.’s Apple TV+, Netflix and other lower-priced services — reduced AT&T’s revenue by $1.2 billion. The shares slipped more than 2%.Stephenson and his team did manage to sell about $18 billion of assets in 2019. That helped AT&T pay down more than $20 billion of debt, meeting a crucial net-debt-to-Ebitda target that was promised to shareholders while allowing the company to maintain its plush dividend. The entertainment division, which is made up of DirecTV, AT&T TV Now and other services, also didn’t deteriorate any further on an Ebitda basis, holding at $10 billion as executives said it would. Having fewer subscribers reduced costs. “We’ve checked every box,” Stephenson said on Wednesday’s earnings call.But there’s still the feeling that AT&T is trying to jump through an awful lot of hoops for a transformation it arguably didn’t need to make. Why hold on to DirecTV and all of its headaches? Why take on all that debt to buy Time Warner? Why join Netflix at its money-torching party?The AT&T team would say that’s the wrong way to think about it. They would like for everyone to stop viewing AT&T as a disparate conglomerate comprising an attractive wireless business on one side and finicky media assets on the other. Instead, they want the entertainment brands and pay-TV services to be seen as reinforcing the wireless business over time. It comes back to the idea of bundling, a remnant of the cable era that is likely to be reborn in the streaming era. The idea goes like this: In a 5G world, where wireless connections are significantly faster, video consumption on mobile devices should only increase. Access to HBO Max and AT&T TV Now could give consumers greater reason to choose AT&T and stick with the network.As it is, AT&T’s unlimited elite plan — which includes HBO Now at no extra charge — has lower churn, meaning fewer of those customers are leaving, John Stephens, AT&T’s chief financial officer, said in a phone interview Wednesday. But very few of AT&T’s 75 million postpaid wireless subscribers actually have that specific plan (and in fact, overall churn was up at AT&T in the latest quarter). The goal is to use the new HBO Max app to achieve the same reduction in churn across a broader swath of its subscriber base as it has with those unlimited elite subscribers, Stephens said.John Stankey, a longtime AT&T executive who heads up WarnerMedia and serves as chief operating officer of the parent company, took it a step further in an interview last October (see my deep-dive: “Is AT&T’s Hollywood Plot Too Far-Fetched?”). AT&T is no longer just competing with Verizon Communications Inc. and other carriers. “We need to make this move to compete with companies that are incredibly strong and capable like the Googles, Amazons and Apples of the world — and so we’re playing big,” Stankey said. His perspective is important because he could end up CEO when Stephenson retires.Verizon has taken an entirely different tack. Instead of launching itself into Hollywood like AT&T has, Verizon has partnered with Disney+ by giving the service away free for a year to customers who sign up for an unlimited data plan. It’s a simpler, less fraught strategy, and investors have rewarded Verizon for keeping it that way. But Verizon is also no Apple or Amazon, and perhaps AT&T deserves credit for trying to be. Plenty of companies — retailers, health-care companies, grocery stores, parcel-delivery services — have been criticized for not better intuiting and preparing for how innovation by Big Tech would overtake their industries.AT&T did what it said it would in 2019, and by 2022 it’s promising better profit margins, stronger free cash flow and a smaller debt load. It’s just that Wednesday’s results make it harder to believe the company will be able to balance it all.To contact the author of this story: Tara Lachapelle at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Apple encouraged investors with blockbuster first-quarter fiscal 2020 results, wherein it topped both earnings and revenue estimates and offered an upbeat outlook for the ongoing quarter.
Apple's (AAPL) first-quarter fiscal 2020 results reflect robust performance of iPhone, Services and Wearables despite lower iPad and Mac sales.
(Bloomberg) -- Apple Inc. shares jumped to a record high Wednesday after reporting holiday-quarter revenue that beat Wall Street expectations on rebounding iPhone demand and surging sales of wearable devices.The results are a remarkable comeback from a year ago, when the most valuable technology company missed its own targets. A sales forecast for the current quarter also exceeded analysts’ projections, while services revenue came in slightly below expectations.The shares, which have more than doubled over the past year, gained as much as 3% to $327.25 at 9:37 a.m. in New York. That’s the highest intraday valuation since the stock started trading in the 1980s, according to data compiled by Bloomberg.“The strength is coming from the iPhone and continued really strong growth in wearables and the App Store,” said Shannon Cross of Cross Research. “The iPhone was very strong.”The Cupertino, California-based company reported $91.8 billion in revenue for the fiscal first quarter, up 9% from a year earlier. Wall Street was looking for $88.4 billion, according to data compiled by Bloomberg. Profit was $4.99 a share, also beating analysts’ expectations.For the fiscal second quarter, Apple said sales will be between $63 billion and $67 billion. Analysts estimated $62.3 billion, on average.After years of rapid growth, Apple’s expansion has slowed as demand for smartphones waned and competition from Chinese rivals intensified. Under Chief Executive Officer Tim Cook, the company’s strategy has evolved. It now aims to sell new handsets to customers every three to five years, and then offer as many services and accessories as possible in the intervening years.On Tuesday, Cook said Apple saw “strong demand” for the latest iPhones and noted that a base of more than 1.5 billion devices has been “a great driver of our growth across the board.”Cook addressed the coronavirus during a conference call with analysts, saying Apple is following developments in China. The company is working closely with employees and partners in the region, he added. Virtually all iPhones are made by Foxconn’s Hon Hai Precision Industry Co. in Zhengzhou, China, and by Pegatron Corp. at an assembly site near Shanghai.Chief Financial Officer Luca Maestri said the revenue range projected for the fiscal second quarter was wider than usual due to uncertainty created by the spread of the virus.Apple Supply Chain Braces for Disruption From CoronavirusAnalysts have been particularly excited about wearable accessories, such as the Apple Watch and AirPods.However, the iPhone still generates the majority of Apple’s revenue. And this crucial business has improved from a dire performance in last year’s holiday period. The iPhone 11 and 11 Pro models were well received in their debut in the fall and demand in China has been particularly strong, outselling 2018’s releases in a market that has otherwise been shrinking.Apple Is Raising TSMC Chip Orders to Meet Strong IPhone DemandApple generated $56 billion in revenue from the iPhone in the fiscal first quarter, up 8% from a year earlier. That was a lot better than the 2018 holiday period, when sales of the handset dropped about 15%. Apple cut the price of its entry-level flagship iPhone by $50, luring buyers. There are also millions of older iPhones that are losing software support from the company, spurring new purchases.Apple’s Lower Prices, Users’ Aging Handsets Drive IPhone DemandWearables, including AirPods, and other accessories generated $10 billion in revenue in the holiday quarter, up 37% from a year ago.The company reported Services revenue of $12.7 billion, up 17% from the same period last year. That missed analysts’ forecasts. This business still mostly relies on older offerings such as the App Store, iCloud storage and Apple Music. It’s unclear how well Apple TV+, the Apple Card and the Apple Arcade gaming subscription are performing, but there have been signs of weak demand for Apple News+, the company’s digital magazine subscription.“One note of caution in an otherwise strong report was that Services, which included Apple TV+, grew slightly below expectations,” said EMarketer principal analyst Yoram Wurmser. “This miss could be attributed to the competition from Disney+, which launched at roughly the same time.”Bob Iger Takes the Gloves Off for Disney’s Streaming Debut(Updates with share gains starting in the third paragraph)To contact the reporter on this story: Mark Gurman in Los Angeles at email@example.comTo contact the editors responsible for this story: Tom Giles at firstname.lastname@example.org, Alistair Barr, Amy ThomsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
At least 15 brokerages raised their price targets on the company's stock on Wednesday, with D.A. Davidson setting the most bullish price target of $385 (£295.9), well above the stock's current median price target of $325. Sales were boosted by the first full quarter of iPhone 11, which is priced $50 less than its iPhone XR predecessor, said Gene Munster, a longtime Apple watcher and managing partner at Loup Ventures.
AMD's fourth-quarter 2019 results benefit from robust adoption of Ryzen, Radeon and latest second-gen EPYC processors. However, cautious revenue guidance for the first quarter is a concern.
The Hang Seng Index plunged on Wednesday as investors caught up to the rest of the world swiftly after being closed for several days due to the Lunar New Year holiday.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Airbnb Inc.’s listings in France, a major but troubled market for the U.S. home-sharing startup, generated more than $2 billion for hosts last year, a person familiar with the matter said.France is Airbnb’s largest market outside of the U.S., offering villas in Provence and the Riviera to apartments on the Champs-Elysees.Bookings using Airbnb’s platform hit $2 billion in 2018 and sales grew in 2019, the person said, asking not to be identified because the information hasn’t been publicly disclosed. Airbnb charges a range of fees -- up to 20% -- depending on the property. Rentals in France rose last year as more users headed to rural retreats, a spokesman for the company said, declining to comment further.Airbnb is facing a deadline to send rental data to the French tax authorities this week as part of a law that requires marketplaces to share user revenue and other information to the state. Tax collectors will compare Airbnb’s disclosures with that of its hosts to look for tax avoidance.It’s the latest measure in a contentious relationship with France, which has sought to squeeze more data and money out of Airbnb and other tech giants under President Emmanuel Macron’s government.A tax on so-called digital giants is targeting large tech companies, including Google, Apple Inc., Facebook Inc. and Amazon.com Inc. It was enforced last year, but suspended last week as Macron sought to fend off U.S. President Donald Trump’s threats to slap tariffs on French wine and cheese. Airbnb said it contributed between 5 million euros ($5.5 million) and 10 million euros to that tax plan before the freeze.Read more about U.S. retaliation to the digital giants tax.Another newly enacted law forces Airbnb to supply local governments with information about the type of housing being offered, the number of guests and its hosts names and addresses. Paris and Bordeaux have asked for data under the new regulations, which took effect in December, Airbnb said. The company also pays tourist tax, which cost them 58 million euros last year, double the amount from 2018.”We are seeing a net loss of nearly 30,000 homes with the tourist furnished rental platforms,” said spokeswoman for the Paris city council. “Airbnb threatens the soul and identity of a number of neighborhoods. We cannot remain inert in the face of this situation. Every major city in the world is facing this problem.”Still, the country’s popularity makes it an important part in Airbnb’s strategy as it gears up for a listing this year. Chief Executive Officer and co-founder Brian Chesky has promised to list the company, which has a private valuation above $30 billion, before the end of this year when some employee stock grants expire.Read more about the company’s plans to list here.More than a decade after it was founded, Airbnb has plenty of experience dealing with regulators concerned about what the home-sharing platform, which now has more than 7 million listings worldwide, will do to local housing stock. U.S. cities including San Francisco and New York have tried to force Airbnb to hand over more data so they can enforce short-term rental laws.Entr’Hotes, a group of about 20 Paris super hosts have met with lawmakers to discuss their views as the government was preparing laws, and have called for more transparency.“The Paris city wants to make hosts responsible for their failure to managing the housing market in the city. Airbnb must show them wrong, and only showing data will prove it,” said Christine, 63, who rents a room in her private home in Paris’s trendy 11th arrondissement.“One thing they must show on the platform is the difference between us -- the home owners who welcome from time-to-time visitors, the DNA of Airbnb -- and the professional rentals, hotels and houses,” said Brigitte, another host who rents her 500-square-foot apartment on the South Bank of the Seine River.\--With assistance from Olivia Carville.To contact the reporter on this story: Helene Fouquet in Paris at email@example.comTo contact the editors responsible for this story: Giles Turner at firstname.lastname@example.org, Amy ThomsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Apple Inc. issued a wider-than-usual sales forecast to reflect what Chief Executive Officer Tim Cook called “uncertainty” caused by a virus outbreak that’s cutting retail traffic, shutting stores and prompting the company to limit employee travel in China, one of its most important markets.The company is also taking steps to make up for production shortages, particularly in Wuhan, the central Chinese city where the coronavirus originated and home to some of the company’s suppliers, Cook said on a conference call discussing recent results. Sales in the current period will be $63 billion to $67 billion. While that’s higher than analysts predicted, it’s also a wider range than the company tends to forecast.“We do have some suppliers in the Wuhan area. All of the suppliers there are alternate sources and we’re obviously working on mitigation plans to make up any expected production loss,” Cook said. “We factored our best thinking in the guidance that we provided you. With respect to supply sources that are outside the Wuhan area, the impact is less clear at this time.”The CEO has led Apple to a remarkable comeback in the past year, reviving iPhone sales, dodging the worst of a U.S.-China trade war and creating a new gadget hit with AirPods. The company’s holiday-quarter revenue surpassed Wall Street expectations, with double-digit percentage sales growth from iPhones, wearables and services in mainland China.Read more: Apple Supply Chain Braces for Disruption From CoronavirusHowever, the deadly, spreading coronavirus is a new challenge for the company, which has most of its hardware made in China. Discussion of the virus was one of the few dour notes during an otherwise upbeat earnings call with analysts on Tuesday. Authorities have placed strict limits on travel, and airlines are suspending flights to China, taking a toll on businesses across the region. Almost 6,000 people have been infected in mainland China, and at least 132 have died.“For now, supply chains for smartphones seem OK, but that can change in a flash,” said Neil Mawston, executive director of the global wireless practice at Strategy Analytics. “If any lockdown spreads and extends well into February or even March, then supply chains could start to get tight.”For more on Apple results, click here for our TOPLive blog.Smartphone factories typically hold two to eight weeks of component or device inventory, so there will be some buffer, at least in the short-term, he added.After an extended Chinese Lunar New Year Holiday, Cook said factories are reopening on Feb. 10, rather than at the end of January. Apple has tried to account for this “delayed start up” through its wider sales forecast, the CEO said. On Wednesday, main iPhone assembler Foxconn Technology Group confirmed all of its facilities will resume full-scale production starting Feb. 10.Beyond potential production disruptions, the outbreak threatens to dampen sales in its largest market outside of the U.S. just as iPhone shipments globally are bouncing back. Apple has closed one retail store in China and some that are still open have reduced operating hours. The company is “deep cleaning” stores and has begun checking employees’ temperatures, Cook said. Last week, it also began limiting employee travel in affected areas to business-critical situations, he added.Revenue from greater China, which includes Taiwan and Hong Kong, climbed about 3% to $13.6 billion in the holiday quarter. The company ended the year ranked fourth among smartphone makers in the mainland overall, up one notch after reversing a decline in market share, according to research firm Canalys.“Given the industry is heading full speed to displace 4G with 5G phones, consumers are likely to pause phone replacement to future-proof devices,” said Nicole Peng, Canalys’ vice president of mobility. “The iPhone 11 series is bucking the trend and was the best-selling 4G device in the China market.”(Updates with Foxconn’s statement in the eighth paragraph)\--With assistance from Vlad Savov and Debby Wu.To contact the reporters on this story: Mark Gurman in San Francisco at email@example.com;Ian King in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Tom Giles at email@example.com, Alistair Barr, Mark MilianFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.