Apple (NASDAQ:AAPL) stock rose 3% overnight after analysts concluded its quarterly results showed “resilience.”
Apple earned $19.4 billion, $1.20 per share, on revenue of $83 billion for the three months ending in June. Profits were down 10% from 2021 but revenue was up nearly 2%.
The results were better than expected although the “whisper number” for earnings had been higher, $1.32 per share. The big news was that CEO Tim Cook said he expects “revenue to accelerate in the September quarter” and that the macroeconomy is not hurting Apple.
The news was important because Apple is by far the world’s largest American company by market capitalization, with a value entering July 29 of over $2.54 trillion. Its lead over second-place Microsoft (NASDAQ:MSFT) is now larger than the entire market cap of Meta Platforms (NASDAQ:META).
What’s Good for Apple
Cook’s earnings call was filled with reassurance that things are getting better.
He said constraints caused by China’s Covid-19 lockdowns were “slightly less” than predicted. He expects supply constraints to lift in the current quarter. He said sales in China fell only 1% year-over-year and that the company is “continuing to hire” in a deliberate way.
The calming words, combined with good news from Amazon (NASDAQ:AMZN), helped lift the whole Nasdaq. The market is led by five tech giants whose cloud data centers drive the economy. Microsoft, Apple, and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) all satisfied analysts. Only Meta failed to measure up, but that failure was already been priced into the stock, down 53% on the year.
What Happens Next for AAPL Stock
With big tech earnings out of the way, and most Wall Street estimates seen as fairly accurate, attention now turns to the impact of rising interest rates and the third quarter.
If technology can continue to fight deflation and cut costs, that quarter may not be half-bad.
On the date of publication, Dana Blankenhorn had long positions in AAPL, MSFT, AMZN, and GOOGL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.