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Apple's Stock Price Reaches All-Time High as Warren Buffett Continues to Praise Company

Apple's stock price has established a new all-time high, as shares exchanged hands for slightly above $187 in intraday trading today. Apple's stock price has been steadily increasing for over a week, driven by the company's successful earnings report on May 1 and Berkshire Hathaway buying 75 million additional Apple shares in the first three months of 2018. North American stock markets have also been rallying in general since Friday. Berkshire Hathaway now holds 240.3 million shares in Apple, worth over $44 billion at the stock's current price, and the holding company's billionaire CEO Warren Buffett continues to praise the company with bullish comments. "I clearly like Apple… we bought about five percent of the company. I'd love to own 100 percent of it," he quipped, in an interview with CNBC. "We like very much the economics of their activities, and we like very much the management and the way they think, and the way they act," he added. Buffett on his Apple stake: We currently own about 5% of the company, "but I'd love to own 100% of it" https://t.co/9SiIuaXfCo pic.twitter.com/A3zsAQfpPu— CNBC Now (@CNBCnow) May 7, 2018 Buffett was only joking about his intention of owning 100 percent of Apple shares, which wouldn't be possible due to financial and regulatory considerations, but the comment is a testament to his confidence in the iPhone maker. Buffett wasn't the only billionaire to offer praise, as Microsoft co-founder Bill Gates said Apple is an "amazing company" in an interview with CNBC, at Berkshire Hathaway's annual meeting. "The top tech

Berkshire Hathaway Bought 75 Million Additional Apple Shares in Q1 2018

Berkshire Hathaway bought 75 million additional Apple shares in the first three months of 2018, CEO Warren Buffett told CNBC on Thursday, signaling the billionaire investor's continuing confidence in Apple. In February last year, Buffett revealed that his holding company held around 133 million shares in Apple prior to the company's record-breaking earnings results on January 31, 2017, worth over $17 billion at the time. Today it holds 240.3 million shares worth $42.5 billion. "If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States," Buffett told CNBC.Historically, Buffett has shied away from investing in technology companies, but the business magnate has suggested he sees Apple more as a consumer company. Reuters reports that Berkshire's latest Apple investment serves as a way of reducing the corporate group's $116 billion in cash and equivalents, without having to acquire a whole company. Apple posted revenue of $61.1 billion and net quarterly profit of $13.8 billion in the first quarter of the year, up from revenue of $52.9 billion and net quarterly profit of $11.0 billion in the year-ago quarter. Apple said it will start a new share buyback authorization of $100 billion following the record revenue and profit

Apple Expected to Report Best-Ever Second Quarter Today With Anticipated Clues About iPhone X Sales

Apple is set to report its earnings results for the second quarter of its 2018 fiscal year at 1:30 p.m. Pacific Time today. The quarter began December 31, 2017 and ended March 31, 2018, according to Apple's fiscal year accounting calendar. Apple provided the following guidance for the quarter back on February 1:revenue between $60 billion and $62 billion gross margin between 38 and 38.5 percent operating expenses between $7.6 billion and $7.7 billion other income/expense of $300 million tax rate of approximately 15 percentApple's guidance suggests the company will report its best second quarter results ever, topping its previous record of $58 billion: 2014: $45.6 billion 2015: $58.0 billion 2016: $50.6 billion 2017: $52.9 billion 2018: $60+ billion Wall Street analysts forecast that Apple will report $60.9 billion revenue, meeting roughly the midpoint of its guidance, and earnings per share of $2.69, according to over 30 estimates averaged by Yahoo Finance. MacRumors has compiled second quarter revenue and EPS estimates from a handful of Apple-focused analysts: Key Takeaways and What to Look ForApple is expected to report iPhone unit sales of 51.9 million, a roughly two percent increase over 50.8 million in the year-ago quarter, according to average analyst estimates compiled by Bloomberg. Apple doesn't break out iPhone sales on a model-by-model basis, but the iPhone's average selling price should reveal whether there's any truth to reports that iPhone X sales have slowed significantly. iPhone ASP was $796 last quarter, up from $695 a year earlier.

Apple to Announce Q2 2018 Earnings on May 1

Apple today updated its investor relations page to announce that it will share its earnings results for the second fiscal quarter (first calendar quarter) of 2018 on Tuesday, May 1. The earnings release will provide a look at sales of the iPhone 8, iPhone 8 Plus, and iPhone X following its record January quarter that saw the company sell 77.3 million iPhones. Apple's guidance for the second fiscal quarter includes expected revenue of $60 to $62 billion and gross margin between 38 and 38.5 percent. Apple will beat its Q2 2017 earnings results based on those guidance numbers. Apple's quarterly earnings statement will be released at 1:30 p.m. Pacific/4:30 p.m. Eastern, with a conference call to discuss the report taking place at 2:00 p.m. Pacific/5:00 p.m. Eastern. MacRumors will provide coverage of both the earnings release and conference call on May

Apple's Services Category Set to Be the Company's Main Revenue Driver Over the Next Five Years

Apple's services revenue is growing at a rapid pace and is on track to be the company's primary revenue driver in the future, according to a note Morgan Stanley analyst Katy Huberty shared with investors this morning (via Business Insider). Huberty believes that over the course of the next five years, services revenue growth will contribute more than 50 percent of Apple's total revenue growth. The iPhone, meanwhile, will make up just 22 percent of revenue growth during the same time period, despite the fact that it's contributed 86 percent of Apple's revenue growth over the past five years. Although "over the last five years, the vast majority (86%) of Apple's 8% annual revenue growth was driven by iPhone sales, it is through monetization of Apple's Services business that we see the company still generating mid single digit revenue growth," she said. Huberty estimated that roughly 60% of revenue growth is now attributable to services. That, coupled with wearables, like the Apple Smart Watch, "will drive almost all of Apple's growth over the next five years," she added.For the last several years, Apple's services category has been setting continual quarterly revenue records thanks to its rapid growth. In the first fiscal quarter of 2018, for example, services brought in $8.5 billion, up 18 percent year over year. The services category includes iTunes, the App Store, Apple Music, iCloud, Apple Pay, and AppleCare. According to Huberty, services revenue is at roughly $30 per device, up from $25 two years ago, but that might not be an accurate reflection of

Apple's Stock Price Reaches All-Time High Above $180 After Warren Buffett Praises iPhone Maker

Apple's stock price has established a new all-time high in the company's history, as shares exchanged hands for slightly above the previous record of $180.10 in intraday trading today following several weeks of gains. AAPL has been on the rise since bottoming out at $150.24 on February 9, one day after the Dow Jones plunged over 1,000 points. The broader selloff in the stock market proved to be short lived, as many technology stocks have since rebounded, and the Dow Jones is up nearly eight percent compared to a few weeks ago. The all-time high comes after billionaire investor Warren Buffett said his company Berkshire Hathaway has purchased more shares of Apple than any other stock over the past year. Berkshire Hathaway increased its Apple holdings by 23.3 percent, to 165.3 million shares, according to recent filings with the SEC. Apple shares have technically traded for higher prices, but today's all-time high accounts for multiple stock splits that have occurred over the years. Apple now has a market capitalization of well over $900

Apple Expected to Report Highest Revenue in Single Quarter in Company's History

Apple is set to report its earnings results for the first quarter of its 2018 fiscal year at 1:30 p.m. Pacific Time on Thursday. The quarter reflects Apple's sales between October 1 and December 30 of 2017. Apple provided the following guidance for the quarter back on November 2: • revenue between $84 billion and $87 billion • gross margin between 38 and 38.5 percent • operating expenses between $7.65 billion and $7.75 billion • other income/expense of $600 million • tax rate of 25.5 percentApple's guidance suggests the company will easily beat its current all-time quarterly revenue record of $78.4 billion set a year ago. Wall Street analysts forecast that Apple will report $87.06 billion revenue and earnings per share of $3.83, according to 29 estimates averaged by Yahoo Finance. A quarter-by-quarter look at Apple's revenue since the 2009 calendar year:Apple's FY Q1 Rev. • 2014: $57.6B • 2015: $74.6B • 2016: $75.9B • 2017: $78.4B • 2018: $84B+ MacRumors has compiled fiscal first quarter estimates from several financial institutions and analysts tracking Apple's earnings results and stock. Key Takeaways and What to Look For • Was the iPhone X a hit? Apple began taking iPhone X orders on October 27, roughly four weeks after the quarter began, so investors will be closely examining Apple's total number of iPhones sold to see if the flagship smartphone had a measurable impact. Apple doesn't reveal iPhone sales on a model-by-model basis, however, so its total will include sales of the iPhone 8, iPhone 8 Plus, and older models in its smartphone

Apple is $100 Billion Away From Becoming World's Only Trillion Dollar Company

Apple shares are currently trading for around $175, giving the iPhone maker a market cap of roughly $900 billion. The valuation puts Apple within $100 billion of becoming the world's only trillion dollar company. Apple shares will have to rise to around the $195 mark for the company to reach a trillion dollar valuation, depending on the rate of its share buybacks, and an increasing number of Wall Street analysts think that will happen. Drexel Hamilton analyst Brian White, who is extremely bullish about Apple, has a lofty 12-month price target of $235 for the company's stock. In other words, he forecasts that Apple could be a $1.2 trillion company within a year.With a market cap of over $900 billion, we believe Apple is on its way to becoming a "trillion dollar baby" as reflected in our price target. We were the first on Wall Street to project that Apple would reach a $1 trillion market cap as reflected by a price target; our current price target of $235.00 equates to approximately a $1.2 trillion market cap.RBC Capital Markets analyst Amit Daryanani has also said Apple has the potential to achieve a trillion dollar market cap, and even surpass that valuation, by the end of 2018. His current price target for Apple shares is $190. Apple could be the world's only trillion dollar company, but it wouldn't be the first. The spice trading Dutch East India Company, founded in 1602, was the first to go public and at one point was valued at over $7 trillion when adjusted for inflation. Wall Street analysts, including White, have been prognosticating Apple becoming a

Transcript of Everything Apple Said About Its Record-Breaking Fourth Quarter Earnings Results

Apple today reported revenue of $52.6 billion and net quarterly profit of $10.7 billion, or $2.07 per diluted share, in the fourth quarter of its 2017 fiscal year. Apple's CEO Tim Cook and CFO Luca Maestri discussed the results on a conference call today. MacRumors has prepared a complete transcript of the call ahead. Tim Cook Good afternoon and thanks to everyone for joining us. As we close the books on a very successful fiscal 2017, I have to say I couldn't be more excited about Apple's future. This was our biggest year ever in most parts of the world, with all-time record revenue in the United States, Western Europe, Japan, Korea, the Middle East, Africa, Central and Eastern Europe, and Asia. We had a particularly strong finish this year, generating our highest September quarter revenue ever, as year-over-year growth accelerated for the fourth consecutive

Apple Expected to Report Strong Summer Revenue of $50B+ as Focus Shifts to iPhone X Launch Quarter

Apple is set to report its earnings results for the fourth quarter of its 2017 fiscal year at 1:30 p.m. Pacific Time today. The fiscal quarter reflects Apple's sales between July 2 and September 30 of 2017. Apple provided the following guidance for its fourth quarter back on August 1: • revenue between $49 billion and $52 billion • gross margin between 37.5 and 38 percent • operating expenses between $6.7 billion and $6.8 billion • other income/expense of $500 million • tax rate of 25.5 percentApple's guidance suggests the company will report at least its second best fourth quarter earnings results in its history. Wall Street analysts forecast that Apple will report $50.7 billion revenue and earnings per share of $1.87, according to 29 estimates averaged by Thomson Reuters. A quarter-by-quarter look at Apple's revenue since the 2009 fiscal year:Fourth Quarter Revenue • 2013: $37.5B • 2014: $42.1B • 2015: $51.5B • 2016: $46.9B • 2017: $49B+ MacRumors.com compiled fourth quarter estimates from several financial institutions and analysts tracking Apple and the company's stock. The figures are listed below, ranked from highest to lowest in quarterly revenue. Apple's fourth quarter earnings results will provide the first official indication of how well the iPhone 8 and iPhone 8 are selling. The devices became available to pre-order on September 15, just over two weeks before the quarter ended, and launched in stores one week later on September 22. Multiple reports have suggested that demand for the iPhone 8 and iPhone 8 Plus has been tepid, but

Wall Street Analyst Says 'Buy the Dip' After Apple's Stock Price Steadily Declines in September

Since hitting an all-time high of $164.94 on September 1, Apple's stock price has steadily declined throughout the month. Apple's closing price of $150.55 on Monday represents a nearly nine percent decline in just under four weeks. Despite some negativity surrounding the stock, one Wall Street analyst believes the recent skid is a buying opportunity. "We believe concerns around the strength of this cycle are misplaced and we would be aggressive buyers of the stock during this correction," said Brian White, a longtime Apple analyst at investment banking firm Drexel Hamilton. White believes the staggered launch of the iPhone 8 and iPhone X is confusing industry observers, who are perhaps worried by reports of shorter lines at Apple retail stores and lower adoption rates of the iPhone 8 and iPhone 8 Plus. "We believe more consumers in the developed parts of the world will pass on the iPhone 8/8 Plus and buy the iPhone X," added White, in a research note obtained by MacRumors. "Those that are on the fence will likely wait to see the iPhone X." White is one of the most bullish Apple analysts, with a lofty $208 price target for the iPhone maker. If the price were to rise that high, Apple would be over a trillion dollar company based on market capitalization. Raymond James analyst Tavis McCourt also said Apple's recent pullback is a "trading opportunity." His survey indicated there could be higher demand for the iPhone X than the firm initially anticipated. Apple's slide has held back the Dow Jones, which is still up around 1.5 percent since the start of

Apple's Stock Price Rises Above $160 Mark to Set New All-Time High

Apple shares are currently trading for between $161 and $162, eclipsing the $160 mark for the first time ever and setting a new all-time intraday high. The nearly 2 percent rise in Apple's stock price gives the company a market valuation of around $835 billion on its path to becoming a trillion dollar company. Apple's previous all-time high in intraday trading was $159.75, set after its third quarter earnings results beat expectations. Apple's record close is $157.14, which could be topped today after less than one week. Conversely, Apple's 52-week low is $102.53, set September 12, 2016, five days after its iPhone 7 event. With focus shifting to the so-called iPhone 8 upgrade supercycle expected later this year, AAPL price targets range between $140 and

Apple's Stock Opened at Record of Nearly $160 Per Share With $830 Billion Valuation

Following its June quarter earnings results, which beat Wall Street expectations for both revenue and iPhone sales, Apple's stock opened at an all-time high of $159.52 today. Apple also opened with a market cap of nearly $830 billion, moving it closer to becoming a trillion dollar company. Investors and analysts alike remain optimistic about the so-called iPhone 8 expected later this year. Drexel Hamilton analyst Brian White today said his Wall Street firm continues to believe Apple remains among the most underappreciated stocks in the world, and maintained his lofty $202 price target. MacRumors obtained the latest research notes from several Apple analysts with updated AAPL price targets and ratings. MacRumors has also published a complete transcript of Apple's post-earnings conference call with CEO Tim Cook and CFO Luca Maestri. AAPL is currently trading in the $156 to $157 range after falling back a few dollars since the opening bell, but it's still up over 4

Transcript: Here's Everything Tim Cook Said About Apple's Impressive June Quarter Today

Apple today reported revenue of $45.4 billion and net quarterly profit of $8.7 billion, or $1.67 per diluted share, in its fiscal third quarter ended June 24. Apple CEO Tim Cook and CFO Luca Maestri discussed the results on a conference call today. MacRumors has prepared a complete transcript of the call ahead. Tim Cook Good afternoon, and thanks everyone for joining us. Today, we're proud to announce very strong results for our fiscal third quarter, with unit and revenue growth in all of our product categories. We'll review our financial performance in detail, and I'd also like to talk about some of the major announcements we made in June at our Worldwide Developers Conference. It was our biggest and best WWDC ever, and the advancements we introduced across hardware, software, and services will help us delight our customers, and extend our competitive lead this fall, and well into the future. For the quarter, total revenue was at the high end of our guidance range at $45.4 billion. That's an increase of 7 percent over last year, so our growth rate has accelerated in three consecutive quarters this fiscal year. Gross margin was also at the high end of our guidance, and we generated a 17 percent increase in earnings per share. iPhone results were impressive, with especially strong demand at the high end of our lineup. iPhone 7 was our most popular iPhone, and sales of iPhone 7 Plus were up dramatically compared to 6s Plus in the June quarter of last year. The combined iPhone 7 and 7 Plus family was up strong double digits year over year. One decade after the

Apple Expected to Report Second-Best June Quarter Ever Today as Investors Look Ahead to iPhone 8

Apple is set to report its earnings results for the third quarter of its 2017 fiscal year at 1:30 p.m. Pacific Time today. Apple provided the following guidance for its third quarter on May 2: • revenue between $43.5 billion and $45.5 billion • gross margin between 37.5 percent and 38.5 percent • operating expenses between $6.6 billion and $6.7 billion • other income/expense of $450 million • tax rate of 25.5 percentThat guidance suggests Apple will report its second-best third quarter earnings results in the company's history. The quarter corresponds with April 1, 2017 through July 1, 2017. Apple's Fiscal Third Quarter • 2013: $35.3 billion • 2014: $37.4 billion • 2015: $49.6 billion • 2016: $42.3 billion • 2017: $43.5+ billionWall Street's consensus is that Apple will report approximately $44.9 billion revenue and earnings per share of $1.57, according to dozens of estimates averaged by Thomson Reuters and Yahoo Finance. Apple is forecasted to have sold 40.7 million iPhones, 9 million iPads, and 4.3 million Macs, according to average estimates shared by Wells Fargo, compared to 40.4 million, 9.95 million, and 4.25 million respectively in the year-ago quarter. MacRumors.com compiled third quarter estimates from several financial institutions and analysts tracking Apple and the company's stock. The figures are listed below, ranked from highest to lowest in quarterly revenue. All signs point to Apple reporting an above-average and generally unsurprising June quarter. The most interesting takeaway will be Apple's fourth quarter guidance and any

Apple Predicted to Become Trillion Dollar Company Within 12 Months

Apple's stock price has declined around 9 percent from its all-time high of $156.10 in May, but Wall Street analyst Brian White believes the recent sell-off represents "yet another buying opportunity" as investors turn their focus to the so-called "iPhone 8" rumored to launch this fall. White believes Apple remains "among the most underappreciated stocks in the world," according to his research note distributed to clients today. A copy of the report was obtained by MacRumors.In our view, Apple's quarterly results will be less important this summer as investors are focused on the iPhone 8 this fall, along with the company's raised capital distribution initiative, depressed valuation and new innovations as showcased at WWDC. We still believe Apple remains among the most underappreciated stocks in the world.White, an Apple bull, added that the upcoming iPhone cycle is setting up Apple to reach his $202 price target over the next 12 months, which would value the iPhone maker as over a trillion dollar company based on market capitalization. Apple's current market capitalization is around $737 billion.Similar to the bottoming process in Apple during the summer of 2013 that drove a strong rally into the spring of 2015, we believe the bottom in the stock during May 2016 and the upcoming iPhone cycle is setting up Apple to reach our $202.00 price target over the next 12 months.In May, RBC Capital Markets analyst Amit Daryanani also said Apple could reach or exceed a trillion dollar market cap within 12 to 18 months, with a stock price of $192-$195. Like White, Daryanani said

Apple's Stock Down 8% Since Reaching All-Time High Last Month

Apple shares are currently trading for around $143 after Monday's opening bell, around 3.5 percent lower than Friday's closing price of $148.98. Apple CEO Tim Cook at the company's Worldwide Developers Conference last week Apple's stock has dropped around 8 percent since reaching an all-time high of $156.10 on May 12, amid a wider downturn in the stock market. Technology stocks have been hit particularly hard, as some investment firms fear that stocks like Facebook, Amazon, Netflix, and Alphabet in particular rose too quickly. Japanese bank Mizuho downgraded Apple to a "hold" rating today, as analyst Abhey Lamba believes enthusiasm around the company's upcoming product cycle is "fully captured" at current levels, with limited upside to estimates from here on out. The bank lowered its AAPL price target to $150, down from $160. Andy Hargreaves, equity research analyst at Pacific Crest Securities, also downgraded Apple's stock last week. In a research note distributed to clients, he said excitement surrounding the so-called "iPhone 8" appeared to be "priced in," compounded by risks such as the potential for gross margin pressure. Wall Street analyst Brian White of Drexel Hamilton believes otherwise, calling the recent dip in Apple's stock price another buying opportunity. "In our view, Friday's sell-off in Apple represents yet another buying opportunity as investors turn their focus to the iPhone 8 this fall, along with the company's raised capital distribution initiative, depressed valuation, and new innovations," said White, in a research note distributed to

Apple's Stock Price Dips Ahead of WWDC as Analyst Issues Rare Downgrade

Apple shares are trading around 1 percent lower today, just ahead of WWDC 2017, after one analyst issued a rare downgrade of the stock."We are downgrading AAPL to Sector Weight and recommend investors reduce position sizes," said Andy Hargreaves, equity research analyst at Pacific Crest Securities, in a note to clients. "We believe AAPL anticipates strong performance in the iPhone 8 cycle, while providing relatively little weight to risks through the cycle or the potential for iPhone sales to decline in fiscal 2019."Wall Street remains largely upbeat about Apple's stock heading into the second half of this year, as investors anticipate the so-called "iPhone 8" to be a hit among customers, but Hargreaves believes the stock has limited upside, as he said hype surrounding the hotly-anticipated device appears to be "priced in." Hargreaves anticipates the upside of the iPhone 8 to be offset by key risks, including the "potential for gross margin pressure, diminishing value of the mobile operating system, and the likelihood for declines in iPhone unit sales beyond the iPhone 8 cycle due to market saturation and elongating." Hargreaves also believes iPhone sales will likely resume declining in 2019, as the iPhone 8 will result in above-average sales in 2018 that are unlikely to be matched once Apple returns to a normalized upgrade rate, similar to what happened after pent-up demand for the larger-screened iPhone 6 started to fade. AAPL was trading at $153.85 at the time of publication, after opening at $154.34, but remains only slightly off its all-time

Bullish Analyst Says Apple Has Potential to Become Trillion Dollar Company Within 18 Months

Apple has the potential to become a trillion dollar company by 2019, according to RBC Capital Markets analyst Amit Daryanani. In a research note on Monday, Daryanani said Apple could reach or exceed a trillion dollar market cap within the next 12 to 18 months. An excerpt from Daryanani's research note, edited slightly for clarity:In aggregate, we see a scenario where in the 2019 fiscal year, Apple sustains $12+ earnings per share and, assuming the valuation frameworks remains stable/improves, it should get AAPL stock toward $192–$195, which would equate to a market cap above $1 trillion.Daryanani believes the so-called "iPhone 8" and the upgrade supercycle it's expected to drive will be a major catalyst towards Apple's path to a trillion dollar valuation. Looking further ahead, he thinks there is potential for Apple to continue growing its Services category revenue by double digits year over year.Longer-term, we think there is potential for Apple to continue growing Services revenue by double digit year-over-year given the company's expanding installed base [of devices], increasing App Store sales within the current installed base, demand for cloud storage/compute services, and further adoption of Apple Pay.Apple's Services category brought in $7.17 billion last quarter, from $6 billion in the year-ago quarter, representing 18 percent year-over-year growth. Apple CEO Tim Cook said the Services category is already the size of a Fortune 100 company, with hopes to double the category's revenue by 2020. Earlier this month, Apple's market cap surpassed the $800 billion

Apple's Retail Chief Angela Ahrendts and Top Lawyer Bruce Sewell Each Sell Over $10 Million in Stock

Apple's retail chief Angela Ahrendts and top lawyer Bruce Sewell each sold over $10 million in company stock over the past week, according to a pair of disclosures with the Securities and Exchange Commission. Pursuant to her trading plan adopted in February, Ahrendts sold 75,000 shares of Apple stock between May 4 and May 8, netting nearly $11.1 million based on the weighted average sale price of the five transactions. Ahrendts still owns 103,116 shares in Apple following the sale, worth nearly $16 million. Sewell sold 67,500 shares of Apple stock in multiple transactions on May 5, netting just over $10 million based on the weighted average sale price. Sewell still owns 141,325 shares in Apple following the sale, worth nearly $22 million. Ahrendts has served as Apple's Senior Vice President of Retail since 2014, overseeing the company's physical and online storefronts. Under her leadership, Apple has been renovating several of its stores, partly in an effort to turn them into community gathering places rather than just sales floors. Sewell has served as Apple's General Counsel since 2009, overseeing all legal matters, including corporate governance, intellectual property, litigation and securities compliance, global security, and privacy. He came into the spotlight last year twice during separate battles with the FBI and Spotify.