Investors from Apple Inc. and Amazon.com Inc. prepared for the worst Thursday afternoon before the financial results of two of the top technology leaders. But the Christmas sales of both companies challenged the skeptics and there was a relief in the market.
The main publicly traded fund that follows the Nasdaq 100 index gained up to 0.8 percent in after-market transactions. After closing lower on Thursday, the PowerShares QQQ fund had been on track for its worst weekly decline since June amid increasing volatility. An indicator of turbulence in the Nasdaq 100 index that derives from options reached its highest level on Tuesday since the election of President Donald Trump.
Apple posted a higher than expected increase in the most observed metric for the iPhone, the average selling price (PPV), a sign that consumers are flocking to the highest range of their flagship phone. That eased worries – as it showed a 6.4 percent drop in stocks in the last 10 trading days – in that Apple was having a hard time attracting buyers for the iPhone X, the tenth-year version of a product. which represents more than 60 percent of your income. (You may also be interested: The founder of Amazon became the richest man in the world)
Amazon gave shareholders an even greater cause for joy. Under the direction of its CEO, Jeff Bezos, the company recorded the highest growth in year-end sales in eight years thanks to the demand for cloud computing and millions of books, toys, clothing and other items that Amazon sells online during the Christmas season. The numbers calmed the concern about the pace of spending in a company that injects billions of dollars in warehouses to store products, robots to pack those items in boxes and servers that consume a lot of energy, producing computing power not only for Amazon, but for a growing number of commercial customers.
Amazon rose to 6.8 percent in extended operations on Thursday after closing at US $ 1,390 in New York. In a sign that some were frightened before the results, the shares lost 4.2 percent in the usual operations on Thursday and much of the decline occurred in the afternoon hours.
Apple shares also fell back late on Thursday, initially falling to US $ 162.54, after the company published results for the first fiscal quarter that did not meet analysts’ predictions and a forecast for current quarter sales that are also It was short. By late afternoon, the stock changed course to negotiate up to US $ 174.27, as investors focused on the positive average selling price and a commitment from CFO Luca Maestri to use billions of dollars. dollars interned to the United States from abroad to pay dividends, buy back shares and make acquisitions. The executive also predicted that iPhone sales would grow at least 10 percent in the current quarter.
Apple’s comments on plans to roll out its cash are a “big positive factor for stocks,” Daniel Ives, an analyst at GBH Insights, said in a report.
Not all colossal technology providers gave investors reasons for optimism on Thursday. The profits of Alphabet Inc. in the fourth quarter did not meet the estimates of Wall Street because the company struggled with higher costs, both to market their devices and to pay websites and phone manufacturers such as Apple to run searches and ads of Google. Alphabet’s share dropped 6.9 percent in extended operations before limiting losses.
But even the less promising figures of Alphabet did little to change a supreme and fundamental expectation that great technology has room to keep growing and that the rise that has led the Nasdaq to a record even last month will continue. The demand for iPhone is booming, if not triggered, and Apple’s top executive, Tim Cook, is directing a lot of energy to new areas, including augmented reality and gadgets can be dressed.
Aside from mastering electronic commerce and taking the lead in cloud computing, Amazon’s Bezos is expanding into healthcare through the creation of a new company with JPMorgan Chase & Co. and Berkshire Hathaway Inc. It is also making inroads into the food industry with the acquisition last year of the chain of 460 Whole Foods stores. Alphabet dominates the growing digital advertising market and is also tackling new businesses, such as autonomous cars and connected homes.
“These companies complied,” said Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, which owns shares in Facebook Inc. and Apple. “These are companies that we expect will generate hundreds of billions of dollars in the next decade.”