Apple and Facebook Surge After Strong Earnings

Apple and Facebook shares are higher after both companies reported earnings. Microsoft is set to report later today.

Apr 24, 2014 at 11:30AM

The Dow Jones Industrial Average (DJINDICES:^DJI)shook off a morning stumble to rise 28 points into the green as of 11:30 a.m. EDT Thursday. Dow Jones component Microsoft (NASDAQ:MSFT) fell nearly 0.7% ahead of its earnings report, while shares of Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB) both rose notably following the companies' own respective quarterly reports.

Durable goods beats expectations
According to the Census Bureau, durable goods orders rose 2.6% on a month-over-month basis in March, while core durable goods (which excludes transportation items) rose 2%. Both numbers beat estimates of 2% and 0.6%, respectively.

Data on durable goods is seen as a key measure of economic activity, as durable goods are generally expensive, long-lasting items, often involved in economic activity.

Microsoft prepares to report
Investors sold Microsoft shares ahead of the company's earnings report expected this afternoon. Analysts are looking for the software giant to report quarterly earnings per share of $0.63 on revenue of about $20.4 billion.

Investors should look to the report to see how Microsoft's ongoing transition is performing. In particular, it will be interesting to see if the end of Windows XP support was able to catalyze a sufficiently potent Windows upgrade cycle, and how successful Microsoft expects its release of Office for the iPad to be.

Facebook jumps after earnings
Facebook was up 2.4% after reporting earnings yesterday after the close of trading. Facebook exceeded analyst estimates both for revenue ($2.5 billion versus $2.36 billion) and earnings per share ($0.34 versus $0.24). Its total monthly active users numbered 1.28 billion. Facebook also announced that CFO David Ebersman would step down later this year, to be replaced by executive David Wehner.


Source: Marlith via Wikimedia Commons.

Apple surges after crushing analyst estimates
Apple shares, meanwhile, surged more than 8% early in the session. Apple reported a strong quarter on Wednesday, beating analyst expectations in almost every category.

Revenue came in stronger than expected ($45.6 billion versus $43.6 billion), as did earnings per share ($11.62 versus $10.16). iPhone sales also came in better than analysts had anticipated -- Apple sold 43.7 million, compared to a 37.7 million estimate. Perhaps most impressive, Apple's gross margin jumped to 39.3%; analysts had only expected the company to report a gross margin of 37.7%.

Apple's next revolutionary product
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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