I can't Believe what Amazon & Apple just did
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Apple earnings and Amazon earnings just came out and IM SHOOK from those earnings! They were beyond great. Apple stock and Amazon stock are both up nice after hours. Would you put these 2 stocks in the stock to buy now category or stocks to watch? LMK.
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Well there’s a picture of me knocked out and no that’s not just me getting back with Ben 13 Okay, that is me getting knocked out by these ridiculous numbers that were just reported by Apple and Amazon let’s call it the apple and Amazon knockout absolutely incredible what both of these companies just posted like I am in like in shock right now like it is ridiculous.
Okay, this was my facial expression seeing those numbers come out and be reported I was like, is this even real? I mean, you know, Apple and Amazon you might expect them to be but the type of numbers they just put up are beyond stunning, like, like, just ridiculous, absolutely ridiculous.
In this video here today, I want to accomplish three things I want to go over those numbers with you guys. I want to show you these top line bottom line numbers as well as a few other numbers. Okay, I want to give my opinion on these numbers from both these companies.
And I also at the end we’re going to go on the whiteboard I’m going to share with you where I think these two stock prices are going over the next one to two years in my personal opinion. So hope you guys enjoy today’s video.
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Fill out the application hopefully you’ll be able to get on a phone call with somebody high up from my team, we can help you scale your portfolio Okay, so let’s start out here by looking at both the stock prices after hours.
Obviously they’re both moving very nice a PL look at that 5.78% up after hours another $23 a share and amazings on up 5% after hours huge move there and by the way, that’s a good thing for Berkshire Hathaway. Okay.
If you don’t know it, guess what? Apple and Amazon both those stocks are in Berkshire Hathaway’s portfolio and Apple’s by far and away the biggest position in Berkshire Hathaway so just keep that in the back of your mind that you know the fact that Apple stock has gone up so much it’s actually a really really good thing for Berkshire Hathaway Okay.
So but massive moves there. By the way, my my big tech dog you know, the FB hates outperforming them both but she okay. So four of the largest tech companies just added 200 plus billion dollars in after hours trading incredible Jeff Bezos owns 57 million Amazon shares. Okay.
Amazon shares up what $153 after hours. That means Jeff Bezos wealth just increased $8.72 billion in a 15 minute span. Or you flipping my flapjacks how ridiculous is that? his wealth just went up almost $9 billion in 15 minutes.
I mean, there’s levels to money, okay, there are levels to money, and that man is playing on his own level where no one’s even close to him. ridiculous thing about this, he added over 20 planet 13 entire company market caps in a matter of 15 minutes just to his personal net worth.
How ridiculous is that? Okay, these Amazon numbers are beyond disgusting. Okay. Amazon reported blowout second quarter results on Thursday, including a huge beat on top line and double digit revenue growth year over year stock climbed obviously 5%. Plus, I can just laugh at these numbers because they’re just laughable how ridiculously good they are.
Okay, earnings came in $10.30 a share $1.46 a share was expected. Are you kidding me? This has to be some kind of freakish joke, like who could have ever expected earnings would be that ridiculous. You know, that’s just I don’t even know how to explain that guys.
It’s just insane. Okay, but maybe even more insane is the revenue beat revenue came in at $88.91 billion when 81.5 6 billion was expected. This company beat by over $7 billion on top line. I mean, guys, this is I can’t even explain these numbers.
It’s just ridiculous. Okay, just absolutely ridiculous. Think about it this way. Okay. The company will you with the whole $81 billion was expected right? That was going to be 28.6% revenue growth year over year, which is, uh, you know, insane.
Just, you know, incredible. And the company just grew what, like 40%. year over year, like, just ridiculous guys. That company is clicking on all cylinders, the retail business, Amazon Web Services, the advertising business is everything across the board is just a Goliath and it just, you know, continues to basically show that, you know.
It deserves to trade it, you know, very, very rich multiple compared to where the market trades out. Let’s just put it that way. At the end of the day, this was a knockout earnings didn’t knock me how cold Okay, it was a 10 of 10. I mean, the most perfect have perfect earnings. It’s very rare. I can give out a 10 a 10.
But if if there’s an earnings that deserves a 10 out of 10 for this earnings period so far, it’s Amazon like you can’t Pull get anything there. It’s just ridiculous. Okay, absolutely ridiculous. Now, what about Apple? What did they do? Okay, well, they had some ridiculous earnings as well.
Epds for Apple came in at $2.58 $2.04 was an estimate. That’s a very, very, very, very nice beat on earnings per share revenue came in at 59.6 9,000,000,052.25. As expected, they beat by over $7 billion on the top line, guys, this is ridiculous. Okay.
I mean, like literally I can’t even I like I like I never foresaw like them doing this big of a number. I’m talking to Apple or Amazon, eating by 7 billion plus both companies. It’s just ridiculous. Okay, just ridiculous.
I mean, you should expect maybe to them to be a little bit. This is what these type of companies do. They usually beat by a little bit, maybe a billion, maybe a $2 billion beat by 7 billion plus. What Okay, what iPhone revenues came in at 26.4 2 billion.
Versus 22.3 7 billion was expected services revenue came in right in line Apple’s business is highly seasonal in its revenue was the highest The company has ever reported in the third quarter, typically the slowest of the Year for Apple.
Okay, revenue was up nearly 11%. year over year. How 11% year over year during a once in 100. Year, Roni, Rona? Why? What? Okay, most companies are seeing their businesses shrink considerably right now. And then you have Apple just say, no, we’re not shrinking. We’re gonna grow 11% year over year, some of our best growth in a while okay.
Every major product line saw your growth services was up almost 15% from the year prior nudging the company passes internal goal of $50 billion in annual services sales. Tim Cook who’s Apple CEO says we are proud to announce that we have achieved our goal of doubling our fiscal 2016 services revenue six months ahead of schedule cook said on the earnings call uncredible Okay, incredible. Look at the numbers.
iPad revenue. Ridiculous okay. iPad revenue came in at 6.5 8 billion versus analysts were expecting 4.8 billion Okay, analysts were expecting 4.8 billion company comes at 6.58 Mac revenue came in over $7 billion 6 billion was expected they beat by over a billion dollars on just Macs.
Think about that for a moment. billion dollar plus beat on just the Mac business. Okay. Whew. Other products revenue came in at 6.4 5 billion versus 6 billion was expected other products think about things like air pods, Apple Watch products like that. Okay, gross margin came right in line 38% Apple’s earnings was almost perfect.
Okay, it’s almost a knockout. I’ll give it a nine out of 10 maybe even a 9.5 out of 10 somewhere around there. I mean, just absolutely incredible. One of the strongest earnings reports I’ve ever seen in Apple’s history you know, in terms of just something that just took everybody by surprise I mean.
Back in the day when iPhone was just really starting to do some crazy numbers in the iPad business has certain take off this is back and still like it’s talking about like the Steve Jobs days. Okay, I remember Apple reports and crazy numbers and just make everybody say what, how did Apple do that?
This was the closest back to those old days where it’s just like took you by so much of a surprise because they beat just by just just trounced numbers, okay. Also Apple announced a four for one stock split, okay, it doesn’t really mean much for you guys and and the shares will become a lot cheaper, but you’ll get four times more shares for whatever shares you own.
The shares will be distributed to shareholders at the close of business on August 24. And will begin trading on a split adjusted basis on August 31. So that’s moves that will be coming up in August.
Okay, so next and now now that we went through this crazy earnings a 10 out of 10 for Amazon, a nine if not a 9.5 out of 10 for Apple, where do I see these stock prices going now? We know after hours Amazon stocks at 3200 plus and Apple stock is at $407 So where do.
I see these two stocks going over the next one to two years I want to share my perspective on these two stocks I’ve been tracking them for over you know a decade now I’ve never personally owned Amazon stock oil I’ve always loved it.
I have personally owned Apple stock, you know used to own Apple stock made a lot of money on Apple stock is did me very well. I went ahead and sold out of Apple proneural maybe a year ago and went ahead and moved that money into Tesla stock which obviously Tesla’s you know.
I mean, Apple is an amazing over that time, but Tesla’s just done on a whole nother level compared to Apple stock me Tesla, I think five extra 6x since I bought that one. So let’s talk about this for a moment next one to two years.
Where do I see these stocks going? So when we’re talking about these two stocks, okay, let’s talk about Amazon first. So Amazon You know, should be trading somewhere around 30 $200 after hours tomorrow, okay.
Now we know they just came out with these ridiculous earnings expectations are, you know, going to be sky high for this company now because now they just reported what was at 40% revenue growth and something like that.
Now the expectations for Amazon are going to all the numbers that are going to be expected from Amazon are going to go up massively for the rest of this year, and probably going into next year, like expectations are going to go sky high.
No, we know, although, you know, the shares are trading at that after hours right now, right? We know the stock was what was it about 17 $100 or so in the march lows kind of area, okay, sometime around March or maybe April, the stock was somewhere around 17 $100. I remember. Okay.
So the stock has ran a lot. And keep in mind that a company like Amazon’s case, right, for that stock tomos double, we’re talking about hundreds and hundreds and hundreds and hundreds of millions of dollars, or excuse me billions of dollars of market cap, this company has gone up, okay, so expectations are now going to be sky high for this company.
Overall, just enthusiasm for Amazon stock is going to be sky high now, like pretty much the highest I’ve ever seen it, you know, are very close to it right? And just expectations, everything across the board is just gonna be sky high, including the stock price right?
Now, a lot of people might be expecting this one to continue to fly up fly up, in my opinion over the next one to two years, I think Amazon will actually be in the zone of about 20 $800 to about 30 $800 for the next one to two years.
And that’s not, you know, a big change, especially for Amazon stock. But why do I think that? The reason I think that is because this stock has risen so much the expectations are so priced in. And that’s why you don’t like let’s just think about this for a moment. Right?
Why is Amazon stock? Only up 5%? After hours, those earnings were ridiculous. I mean, they just absolutely obliterated anything that was expected from Wall Street. Why isn’t the stock up 20% after hours right now, because Gosh, I mean, you know, if we’re going to talk about stock that deserves to be up 20% after hours right now, or 20%?
Tomorrow, let’s say it looks like it’s Amazon, right? Because they just they just, I mean, that was a 10 a 10. Or and you don’t get better than that in stock market. Ridiculous. Okay, why is the stock not up 15 20% was not going to be up 25%. Tomorrow, we’ve seen other stocks do that in the past?
Well, at the end of the day, when it comes to Amazon, the stock has ran a lot already. It’s already priced in so much good news. So we got some, you know, obviously extraordinary news, and it makes it go up, but it doesn’t make it go up like crazy, it makes it go up. 5%, right.
Not a crazy amount, a lot of money has already rotated toward stocks, like Amazon, okay, a lot of money already. Because, you know, some smart investors some smart funds out there, realize that Amazon’s gonna capitalize on this whole groaning running situation, and they’re gonna probably thrive.
And obviously, they’re thriving, like they’ve never thrived before, right. And so a lot of money has rotated into Amazon. So as their stock goes over 3200 maybe approaches 3300 3400, something like that, over the coming weeks or months, expect likely a rotation of money into some other stocks, the next play the next wave of stocks that will likely have some you know.
Incredible earnings and those sorts of things. Because now expectations are going to go so sky high for Amazon, that it’s gonna be, it’s gonna be hard for them to come out of with a 1010 next quarter, I can guarantee that because analysts are about to make their numbers go up so high, because now No.
It’s gonna be like, well, they just grew 40%, they’re probably gonna go 3035, maybe 40%. Again, next quarter, let’s bump our numbers way up from what we were expecting 23%, right. And so now I’ll send if you’re Amazon, it’s going to be hard to impress, it’s going to be hard for the next earnings to be a 10 out of 10.
I can tell you that, and especially for the rest of this year, if not going into next year. And so that’s why I think this stock will ultimately Oh, my goodness, I’m dropping markers. That’s why I think ultimately, this stock will be stuck in this range for the next one to two years.
I don’t think you know, the stocks going to 4000 plus in the short term, you know, who knows, it is amazing, isn’t it, it could do anything. But I just think it’s going to get to that top that peak.
I feel like we’re almost peak enthusiasm around a lot of big tech stocks in general, but especially around Amazon, because of how ridiculous these earnings. So I think, you know, going over that over the next year or two is going to be very, very difficult.
And to keep moving up that market cap, it’s going to be really difficult, especially when so much money has already rotated into this play over the past four or five months, which is how you’ve gotten the stock to go from 1700 right to 3200.
You know, we’re talking once again about you know, was that 700 billion plus dollars and market cap have been added in the stock if not more than that. That’s an incredible, incredible number. Apple stock. Let’s talk about Apple for a minute.
Okay, so Apple is trading at what was it about 400 and I think it was $7 after hours, something around that okay. After hours here, and when it comes to Apple stock, this stock was in the two hundreds, right in those around those March lows somewhere around the 200. range to 50 to 60, something like that, right.
And so this is another one that’s added, you know, hundreds and hundreds and hundreds of billions of dollars in market cap, in my opinion over the next one to two years, Apple will float anywhere between $350 a share to $450 a share for the next one to two years. Okay.
Now, obviously, they should have a 5g iPhone coming out, that’s going to be good for them, things like that. Right. But this is another situation, like in amazings on right, where the stock has already priced in so much good news, right?
Remember, this stock added? You know, 700, let’s say $800 billion in market cap over just the past several months, a lot of good news has been priced in this another one they say, Man, you know, that’s the first time Apple has come out with she’ll like shocking earnings since probably the Steve Jobs days right?
In the stocks only up 5% after hours, huh? Like why is the stock not up 10% 15% was not up 20% those earnings were ridiculous, they crushed it. Because a lot of this has already been priced in with this stock, which is why it’s up 5%, not 15%.
And so I think this is kind of a realistic range for the stock, I think there’s going to be hard for these stocks to you know, climb to the sky over the next one to two years, simply because there’s just, you know, almost like a peak enthusiasm around these stocks, there’s been so much money that has rotated into them.
The expectation is going to go sky high for these companies. Which means essentially, when when expectations go sky high from these company from Wall Street analysts, this is going to put these companies on situation where they either Miss numbers, or whether they slightly beat numbers. And when you go from a stock where you were crushing it, and you were just you know.
Obliterating Wall Street to all sudden you either Miss numbers, or you’ve slightly beat all sudden investors like, Whoa, whoa, whoa, what happened here, this is a way it works as well as just the way it works on Wall Street.
Sometimes people get way too excited about these stocks, they move up way too much. And other times the stocks move, you know, down way too much. It’s just the way it is. So I think this is another stock, I think both these stocks will be stocks that will be range bound for for the next one to two years simply on the back of just they’ve already ran so much.
The valuations have pushed up so much that I think it will be hard to get these stocks to higher and higher levels over the next one to two years. I think you know, that’s my opinion there. And that’s my opinion there. We’ll see what happens obviously, over time. But you know, a lot a lot is being priced into these stocks.
Now. Although these earnings were ridiculously good. But you know, there’s a way Wall Street works, man, you come out and crush it, you’re on top of the world, enthusiasm peaked, all sudden, another quarter to go by. And also, as I said, I have an Amazon, Amazon a quarter two ago, right?
When that stock went down to 1700 bucks. It was like, you know, a lot of negativity. Same thing with Apple when it fell to 200. Right. And also in a matter of a quarter two things that the whole, the whole sky has changed.
And also now is like peak enthusiasm around the stocks and everybody’s like, Oh my gosh, these stocks are gonna grow the sky, this is the best thing ever, right? You know, just keep that in mind, things change that fast on the positive.
Remember, they can change a lot faster on the negative. And it’s not because these companies are going to do bad. It’s just for the fact that also the expectations aren’t being beat the way they were being beat before and all sudden, you know, it’s kind of silly how it works.
But it’s Wall Street. I’ve been this game for over 12 years now. It’s what I’ve, you know, consistently seen with some of these types of stocks. So I hope you guys enjoyed today’s video, as always, let me know your opinion down there in that comment section.
What is your one to two year price target for the stocks? Do you think Amazon’s going to 4000 Plus, do you think Apple’s going to let’s say 500 plus on the next one, two years? And what’s your thesis around that?
Or do you not see that I would love to hear from you guys in that comment section as always, whether it’s you know, whatever your opinion is, as always, okay, and by the way, if you want to learn how to scale your stock market portfolio, check out the first link in the description down there.
They’ll definitely help you out and hopefully we can get you on a call. Thank you for watching and have a great day.