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.
Summary
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.
Join us today in the trading room for our LIVESTREAM broadcast during market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.