By Angela Wills
Next week may be just around the corner but all the buzz is about December! What’s the topic of conversation? Apple’s fourth quarter (Q4) earnings happen to be at the top of the list.
Tech earnings is coming off of a very big week with reports released by Amazon, Google and Microsoft. Reports from Apple are expected to surface on Tuesday.
Amazon has emerged as the shocker for many with reports of higher profits than expected. The increase in profits is due in part to the strength of growth in cloud services and the Prime delivery business. These factors help Amazon to experience record profits during the last year.
Google plans to improve its mobile search capabilities for users and capitalize on the efficiency of its use for those who choose to buy during or after their searches. However, it reports stability in shares to its users.
Microsoft credits its phenomenal quarterly revenue to its cloud computing success and has shares rocketing through the roof.
In the meantime, Apple analysts are in a heated debate over a couple of perceptions set forth regarding the performance of Apple shares on the market. One analyst goes so far as to admit that there may be a weakening in sales performance in comparison to what they had initially projected. Another analyst points out that investors have grown weary because of a variety of negative little things surfacing on the Apple market. However, he believes that with weakness in a variety of other areas, Apple still holds the lead as the strongest supply chain available.
The irony in all of this is that these analyst aren’t referencing the results to be revealed in Tuesday’s reports but instead, the results that come out in January.
Wall Street seems to be convinced that Apple’s most current quarter won’t show great results in the report. Investors are expecting the company to report earnings with not much cushion between estimated highs and lows.
Investors are concerned with this quarter and not what comes after Christmas. The report that comes out Tuesday is the one that will motivate stocks to move or cause them to linger. The question remains as to how Apple will compare this year to the profits they generated last year this time.
Tuesday will paint a much clearer picture for investors and all interested in how Apple stacks up compared to other major players.