Apple stock pops after blowout earnings report, Robinhood stock up despite earnings miss

Yahoo Finance Live's Jared Blikre breaks down midday trading in the stock market.

Video Transcript

KARINA MITCHELL: And here with what is happening, whipping things up today, let's bring in our Yahoo Finance's Jared Blikre. Jared.

JARED BLIKRE: Yeah, we've got a lot to whip up today. And let's begin with Apple because that is the King Kahuna news item of the day. That stock up over 5%. Very rare to see Apple move like this. I think it's the biggest jump that they've had in at least six months. Now this year, you can see, they're underwater by about 5%, but over the trailing year, they're still up 22%. So this was a knockout earnings report. And let me just give you the revenue number, $123.95 billion. That's almost $125 billion in one quarter.

And I have some commentary by the Street. And here's what Deutsche Bank is saying. They rate the stock a buy with a price target that is now $210. And they're raising that from $200, so about $30, $40 to go from there. And they're saying analysts was impressed with Apple's strong results, particularly on the iPhone and Mac side. This should help alleviate some investor concerns about the adoption of the iPhone 13 family and a slowing PC market.

Now Wedbush, which holds it with an outperform or recommends it with an outperform, price target of $200, saying Apple reported a monster iPhone number despite the chip shortage. Analyst Dan Ives is writing that this quarter is a major statement on iPhone services demand. Also noting Morgan Stanley, they raised their price target to $210 from $200 as well. So all in all, this is a stock that if you'll recall, I think it was the first trading day of the year, they reached $3 trillion in market cap. And that was very brief, but you can see still retaining most of that $2.75 trillion for Apple as of right now.

ALEXIS CHRISTOFOROUS: And also seeing some big gains today, Jared, is Visa. I'm looking at our trending list. It's number 3 right now on the Yahoo Finance trending ticker site. I guess stellar earnings there as well.

JARED BLIKRE: Yeah, it really says something about the payment industry here. Let me see if I can find Visa. I'm not sure if I have it on the screen so I apologize, guys, if I can't get the chart up, but really stellar earnings there. I have to go through my notes, and I'm afraid that I don't have the analyst commentary that I was looking for.

So why won't we do this? I'm going to pivot over to Robinhood because this is another trending ticker that we're covering today. And let me just show you what's going on. It's up 5% after reporting earnings, but it was down over 10% when I was breaking the news last night. And I do have some analyst commentary on Robinhood. Barclays is saying that the lower revenue and EBITDA estimates for 2022 are the most challenging equity and crypto market backdrop, but most metrics are actually trending reasonably well.

KeyBanc saying that they're cutting their price target to $15 from $25, saying trading volumes meaningfully slowed in recent months. As the growth crypto meme craze faded, 2022 is derisked, and there is more that could produce upside than downside. Expect the company to be profitable again in 2023.

Mizuho rates it a buy. They're saying expect further stabilization of the business as the year progresses. So all in all, they missed on every single key metric that I was looking at, but I guess the Street is saying better than feared. So this is a stock that has been beaten down and beaten down. I think yesterday was a record low for it, but maybe in the recovery phase as we speak.

KARINA MITCHELL: OK, and then finally, like Apple, luxury conglomerate LVMH hitting it out of the park, recording record sales.

JARED BLIKRE: Yes, and we do have this one. So let me go to our luxury heatmap here. And this is a stock-- LVMH has been-- and you can see the size of this relative to everything else. Big luxury has been performing really well at the expense of smaller luxury. And you take a look at these numbers. Organic revenue for the fourth quarter, it was up 27%. The estimate was for 15%, a lot of that coming from fashion and leather goods. Those sales were up 28%, and the estimate was only 16%.

Now they're also saying they don't expect business travel to recover soon, but they are managing the volatile tourist season fairly well. Inflation is a factor, but they're saying that they can react to it, which I think means that they have pricing power. Finally, they're talking about M&A. They acquired Tiffany's over the last year. And so we know that they will be patient about acquisitions after absorbing that sale.

So let's take a two-year look so we can see what happened throughout the pandemic. And that's a classic chart there from the lower left to the upper right from those pandemic lows, up 74% over that time period. And Karina, I know you were on the call last night. What did you hear in particular that got your attention?

KARINA MITCHELL: Yeah, it was an interesting call, and all around, really, really great results, very similar to Apple. And the stock did well initially, and then, you know, for some reason, investors didn't jump on it right away. But now it did finish the session in Europe slightly higher. But also interesting on the call, you know, billionaire Bernard Arnault, the third richest guy in the world, right, he talked about sales as well.

And he said the US was an outperformer as far as growth and sales. In fact, he said the US was actually its best performing country for sales, accounting for 26% of total sales in 2018. He also said Asia is picking up, and they plan to expand their footprint particularly in China, as well as the rest of Asia. And they said Europe has been the laggard there, but did start to pick up in the fourth quarter as far as a return to luxury growth there.

Also want to touch-- you know, you touched on it. They acquired Tiffany's, so it's a first period where they're reporting with Tiffany sales. And they said watches and jewelry saw revenue growth of 167% in 2021 compared to 2020. And they said in large part, that is due to Tiffany, which they consolidated for the first time. And, you know, they said that Tiffany helped increase their global visibility as well, and that was tied to ad campaigns. One in particular that featured Beyonce and Jay-Z was very popular, focusing on love and diversity.

But also in the space, other names in jewelry also performing well. Bulgari saw momentum, booking 128% growth. And in its watches category, Tag Heuer inaugurated a major partnership with Porsche. And it successfully launched a Super Mario limited edition of its smartwatch as well. So they are making big gains. And they did touch on NFTs. They said we're watching that space. We prefer tangible products at the moment. We don't want to sell something for 10 euros when we have a luxury product on our hands. But it could be interesting, and they're watching to see how profitable that sector could be.