AAPL Bounces

Despite its recent difficulties, AAPL has outperformed
MSFT over the past five years. (WSJ)

Unlike its other mega-cap peers, Apple stock had barely moved in the past twelve months. It had not outlined an artificial-intelligence strategy, its iPhone sales had fallen in China, and the Justice Department had launched a broad antitrust action against Apple. Expectations had been set very low for Apple's quarter ended March 31, 2024.

Apple's report on May 2nd provided a pleasant surprise:

Apple stock rallied in afternoon trading, after results narrowly beat estimates and the company touted a new $110 billion buyback program.

Apple also signaled sales are likely to grow this quarter, when it reported earnings late Thursday.

Shares in Apple stood more than 6% higher in recent trading, mirroring a late-Thursday rally. The stock hasn't risen more than 5% in a single session since late 2022, FactSet data shows.

Here is how the results stacked up against analysts' consensus expectations from FactSet:

Revenue of $90.8 billion vs. expected $90.4 billion

Net income of $23.6 billion vs. expected $23.3 billion

GAAP earnings of $1.53 per share vs. expected $1.51 per share

Apple approved an additional $110 billion in share repurchases, and raised its quarterly dividend by a penny to 25 cents.

Apple may have already hit its bottom this year. I'm holding on.