Apple Inc. (NASDAQ:AAPL) is always in the spotlight during earnings season and Apple stock investors always wonder, will the company come in with strong earnings? Will AAPL give us bullish guidance moving forward?
The excitement over AAPL stock’s quarterly announcements is almost as breathless as the anticipation for its newest devices. And given the significant fan base for both, it’s little surprise that that regardless what is said or unveiled, there’s always excitement.
Even when AAPL misses earnings, there are always plenty of reasons. Even when there’s a negative earnings surprise, it’s usually met with rationalizing analysts that put the miss in perspective and simply build even greater expectations for Apple stock in the next quarter.
And so it is this time around with the newest iPhone releases. The iPhone 8 has launched and while it is not a revolutionary achievement, sales have been brisk.
What Can Apple Stock Investors Look Forward To?
But the highly anticipated iPhone X, the signature model built for the 10-year anniversary of the iPhone, has had some production delays. Most of the issues have been grist for the Apple stock rumor mill and no one is precisely sure what the delays are — OLED screen issues, thumbprint vs facial recognition challenges, etc.
But the fact is, this $1,000 smartphone has the entire mobile market interested in what happens.
The other fact is, it doesn’t really matter for AAPL stock.
If Q3 numbers aren’t strong, then everyone will look to Q4 numbers, when the model X has been delivered to the first orders. That will also include holiday sales, which will likely be brisk since most of the major carriers are pushing iPhone deals. And, a disappointing Q3 only means Q4 will be huge.
If numbers are good, then all is right with the world and Apple stock continues its ineluctable rise. And the view will be that a strong Q3 bodes well for a strong Q4.
AAPL’s annual revenue in 2016 was about $215 billion, yet its market cap is nearly $860 billion. This is the kind of thing that investors should think about.
Bottom Line on AAPL Stock
Apple, in the near-term, is an unassailable franchise. One quarter will not be the demise of Apple stock. Its fortunes will not turn on even a rough year. That is the most attractive quality of the stock — it’s a foolproof growth stock that will continue on its path for years to come, regardless of the newest phones, computers and apps.
AAPL stock has reached the rarified air that few stocks manage to attain, where it has built such a competitive moat around its business it is virtually unassailable; it has transcended quarterly earnings.
As long as it’s managed competently and it doesn’t do anything outrageously risky to its brand or its revenue stream, there is nothing that will stop Apple stock from growing in the long-term.
Richard Band’s Profitable Investing advisory service helps retirement savers outperform the market without losing a minute of sleep along the way. His straightforward style and low-risk value approach has won seven Best Financial Advisory awards from the Newsletter and Electronic Publishers Foundation.