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Seems like people are paying attention to the numbers that Apple is projected to report after the bell tonight. It will be interesting to see what Apple reports and if they can give some guidance and how the market reacts to it. I don’t have a clue as to how things will go short term. I still like Apple’s long term prospects.
Still some great growth but not what the analysts were predicting. Stock is off 6-7 bucks after the gain of 3.5 bucks during the daytime session. While they didn’t hit the analysts numbers, the report is still good. What the stock does overall will depend on what is reported during the CC. Unless something comes up differently in the CC, will still hold long term. Short term price action may be influenced by Amazon reporting underwhelming numbers as well, at least from the headlines I was looking at.
Without the supply chain issues, that extra 6 billion would have put Apple at the high end of estimates. For right now, TC hasn't given me a reason not to believe what he says so I will tend to believe it.
Still, comparing it to the similar quarter last year, even though there were issues, it is a pretty darn good quarter, especially when you consider how big Apple is right now. If the estimates were for 80 billion and they came in with the present quarter, there would still be those that would say that it should have been better.
Apple will probably spend some time in the woodshed right now. I wouldn't expect any big moves up in the stock. I would hope that we would hold the mid 140s. I think they are going to have to grow into this valuation. But a lot may depend on how the analysts spin this.
Might be a good time for Apple to buy back some more of its stock. I think the report said they bought back about 20 billion dollars worth of stock in the past quarter and they still have a way to go to get to the cash neutral position they talked about. That is if they have confidence in their demand. 20 billion in the last quarter says that they do.
I wonder whether proposed legislation for a 1% tax on buybacks will discourage companies like Apple from buying back their own shares. More broadly, I wonder whether this kind of tax really does anything constructive in terms of raising tax revenue and addressing the widening gap between incomes of very wealthy and low to middle income groups – a gap that itself has been shown to reduce the growth rate of gross domestic product. There are better alternatives, but you won't find them considered by politicians, most of whom have never prepared their own income tax forms.