Earnings from tech giant Apple, social media winner Facebook and eCommerce leader Amazon are shaking the bears this morning. Many thought this group would fail. That said, we will be taking profits off the table on short-dated options.
Apple Beats Expectations
Apple (AAPL) reported Q3 earnings of $2.58 per share on revenue of $59.7 billion. The consensus earnings estimate was $2.03 per share on revenue of $51.1 billion. The Earnings Whisper number was $2.15 per share. Revenue grew 10.9% on a year-over-year basis. – earningswhispers.com
Apple is trading near the top of its afterhours range $413.11 (+28.65), after Tim Cook’s bullish comments during the conference call and several Tier-1 upgrades from JPM, UBS and RBC this morning. Cook also announced a 4:1 split scheduled to occur at the end of August.
We’ll take some profits at the open, as we held the 400c into earnings.
Also note that Apple and Amazon stock is on the IBD Leaderboard. FB stock and VRTX stock are on the IBD 50.
Amazon Delivers Q2 +40% Growth
Amazon is trading near the top of its after-hours range $3241.00 (+189.12) after Jeff Bezos confirmed AMZN grew at 40% YoY.
Amazon.com (AMZN) reported Q2 June earnings of $10.30 per share on revenue of $88.9 billion. The consensus earnings estimate was $1.74 per share on revenue of $80.5 billion. The Earnings Whisper number was $1.84 per share. Revenue grew 40.2% on a year-over-year basis.
The company said it expects third-quarter revenue of $87.0 billion to $93.0 billion. The current consensus revenue estimate is $85.61 billion for the quarter ending September 30, 2020. – Earningswhispers.com
Facebook Beats
Facebook (FB) beat by (0.36) as advertizers flocked to the platform, delivering revenue of $18.7 billion.
Facebook’s stock is trading at the top of its pre-market range $251.00 adding 1.10 points or (+7.04%). Those of us trading call options into earnings should take some off at the open as IV crush sets in.
Facebook (FB) reported its Q2 June 2020 earnings of $1.80 per share on revenue of $18.7 billion. The consensus earnings estimate was $1.44 per share on revenue of $16.9 billion. The Earnings Whisper number was $1.51 per share. Revenue grew 10.7% on a year-over-year basis.
With earnings nearing the halfway point, these companies handily beat muted analyst expectations. We assume the second half of earnings will be no different.
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Happy Trading,
Vinny
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