To The Moon

Can Apple continue to rise after the Q2 report?

Apple Inc. reported its financial results for the second fiscal quarter of 2024, showing a total net revenue of $90.753 billion, which is a 4% year-over-year decrease. The net profit also saw a slight decline, dropping by 2% to $23.636 billion. Notably, the company's revenue in the Greater China region specifically fell by 8% to $16.372 billion, reflecting a more significant downturn in that market segment compared to the global figures.

With Apple's $110 billion share buyback, Warren Buffett's reduction in holdings, and the launch of the iPad with the M4 chip, do you still have confidence in Apple??

Below are some insights from Tigers@nerdbull1669, @mster, and @Shyon. Which opinions do you agree with？

🎁Special Notes: Whoever showed up on the” What the Tigers Say” column will receive 100 Tiger Coins and an exclusive interview invitation to honor your contribution.

Click titles to read the full analysis:

1. @nerdbull1669 : This is because if the tax rate were to go up based on Fed fiscal policies, the reason why Buffett and team decided to book the gains on Apple stock first, because of worry of a potentially higher tax rate in the future.

Key Points:

• Despite the reduction, Apple remains Berkshire Hathaway's largest holding, valued at $135.4 billion for around 790 million shares as of May 4, 2024.

• Buffett has stated that the sale of Apple shares was primarily for tax reasons, as the stock price had increased significantly. He also indicated a strategic move to avoid higher taxes in the future, possibly due to rising U.S. interest rates.

• Despite the sales, Buffett continues to praise Apple, calling it his second-most important business after Berkshire’s insurance businesses, and it is "extremely likely" that Apple will remain Berkshire’s largest holding by the end of 2024.

2. @mster : While short-term fluctuations in Apple's stock price are to be expected, the company's long-term outlook remains positive. With its focus on AI and continued innovation, Apple is poised to maintain its position as a leader in the tech industry for years to come.

Key Points:

• It's common for Apple's stock price to temporarily dip after major events, leading some investors to consider if the company will use artificial intelligence (AI) to return to a growth trajectory.

• The initial hype around new product announcements often results in a short-term sell-off and downturn in stock price, which typically stabilizes or rebounds as the market adjusts to the news.

• There is significant interest in how Apple will incorporate AI into its products and services. As AI becomes increasingly important in technology, observers are keen to see Apple's strategic use of AI to improve user experiences and drive innovation.

• Despite short-term market fluctuations, many analysts and investors remain optimistic about Apple's long-term growth prospects, supported by its loyal customer base, strong brand image, and robust ecosystem of products and services.

3. @Shyon : Amid growing pressure due to a slow roll out of AI services, I believe Apple can catch up with their innovative technology which is proven over the past decade! For such, I am long-term bullish for Apple.

Key Points:

• Personally, I like Apple iPad very much, even though the selling price is at a higher side in the market. The iPad is known for its transportability. It's easy to carry. Watching videos and television is crisp with the built-in Retina display. And the sleek design, expected from every one of their products, makes it both stylish and responsive.

• The reduction in Apple's shareholding by Warren Buffett is seen as a routine investment move to secure profits, rather than a signal of concern about Apple's prospects.

• There's confidence in Apple's innovation capabilities, especially in chip design which is used across the iPhone, iPad, and Mac laptops, and an expectation that Apple will continue to lead with technological advancements.

• Despite Berkshire Hathaway's recent sale of shares, there is a maintained long-term optimism for Apple's stock performance, with the belief that the company will sustain its role as a key player in the technology sector.

Questions for you:

With Apple's $110 billion share buyback, Buffett's reduction in holdings, and the launch of the iPad with the M4 chip, u still have confidence in Apple???

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⏰Duration

• 15 May (24pm EDT)