We are 90% through earnings season and so far so good. There are however a few stocks those earnings reports were confusing.
Apple, Inc. (AAPL) – Although Apple saw top-line revenue growth in the 2nd quarter, most of the revenue growth was generated through service divisions, including iTunes and iCloud subscriptions. The company is increasing service subscription fees to offset slowing iPhone sales.
Square, Inc. (SQ) - Although SQ saw an increase in top-line revenue ($1.17 billion) the company’s sales volume number is slowing. This is not unusual for a growth stock, but Wall Street institutional traders had a negative reaction. Because of this, the stock pulled back today, Friday, August 2nd. However, there is no need to worry. I still view Square, Inc. as a spectacular long-term hold.
Although a series of Trump tweets about China tariffs pulled the market down today, in the long-term it looks like Wealthy Investors like us will do well.
As of Friday's close, Microsoft, Inc (MSFT), Texas Instruments Inc. (TXN), Nike, Inc. (NKE) and Cisco Systems (CSCO) are all on sale.
Stay open. Stay positive.
Tyrone Jackson
The Wealthy Investor
