Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



A Fool Looks Back

Apple  (NASDAQ: AAPL  )  finally did it. The consumer-tech giant offered up what could be considered the first blowout quarter of the Tim Cook era, leading Apple shares to post their largest single-day gain in more than two years. 

Apple's profit of $11.62 a share was well above the $10.18 analysts were targeting, making this Apple's first double-digit percentage beat in several quarters. Margins expanded, with net income growing faster than sales. 

But the report wasn't perfect. A 5% uptick in sales isn't exactly going to re-establish Apple as a growth stock, and the 17% surge in iPhone sales was offset by a problematic decline in iPads. However, Apple came through when it needed to the most. Lacking the first breakthrough product since the end of the Steve Jobs era, Cook and his crew have been posting uninspiring financial results in recent quarters. An important contributor to the quarter's success was Cook's aggressive share buybacks that have helped prop up profitability on a per-share basis. This strategy is why earnings per share soared 15% off a mere 7% uptick in net income. 

Well played, Apple.

Briefly in the news
And now let's look at some of the other stories that shaped our week.

  •  (NASDAQ: AMZN  )  helped boost the profile of its Prime Instant Video offering by landing content licensing rights to begin streaming older HBO shows. Grabbing classics including The Wire, The Sopranos, and Six Feet Under -- as well as access to older seasons of some current shows -- could be a game changer. Terms of the deal weren't disclosed, but Amazon isn't afraid to spend money now to grow its audience later. It proved that later int he week by posting a 19% decline in operating income for its latest quarter despite a 23% pop in net sales.
  • Netflix  (NASDAQ: NFLX  )  probably didn't appreciate seeing Amazon grab the valuable HBO content, but it had no problem growing in its latest quarter. There are now more than 48.3 million streaming subscribers worldwide relying on Netflix for video entertainment. Netflix also revealed that the price increase for new members that it's been hinting at in recent months will finally go into effect later this quarter.   
  • Qualcomm  (NASDAQ: QCOM  )  is still cashing in on the smartphone revolution. The success of its multi-mode 3G and LTE chips helped Qualcomm achieve revenue and earnings growth of 4% and 8% respectively in its latest quarter. It sees growth accelerating through the balance of the year on both ends of the income statement, raising its forecast for 2014. 

Learning from the past helps you spot hot trends in the future
Every investor wants to get in on revolutionary ideas before they hit it big -- like buying PC maker Dell in the late 1980s, before the consumer computing boom, or purchasing stock in e-commerce pioneer in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hypergrowth markets. The real trick is to find a small-cap "pure play" and then watch as it grows in explosive fashion within its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 trillion industry. Click here to get the full story in this eye-opening report.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 26, 2014, at 1:02 PM, bghouse wrote:

    Big buybacks and increasing dividends. Rumors of being listed on the Dow. No promised revolution of how we watch TV ... Apple is well on its way to being a stodgy old blue chip.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2931538, ~/Articles/ArticleHandler.aspx, 8/29/2015 9:01:41 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rick Munarriz

Rick has been writing for Motley Fool since 1995 where he's a Consumer and Tech Stocks Specialist. Yes, that's a long time. He's been an analyst for Motley Fool Rule Breakers and a portfolio lead analyst for Motley Fool Supernova since each newsletter service's inception. He earned his BBA and MBA from the University of Miami, and he now lives a block from his alma mater.

Today's Market

updated 11 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
AAPL $113.29 Up +0.37 +0.33%
Apple CAPS Rating: ****
AMZN $518.01 Down -0.36 -0.07% CAPS Rating: ***
NFLX $117.63 Down -0.03 -0.03%
Netflix CAPS Rating: ***
QCOM $57.45 Up +0.09 +0.16%
Qualcomm CAPS Rating: ****