The S&P 500 closed at another all-time high for the third straight session at 2,945.83 while Apple shares surged after its earnings were released after the closing bell on Tuesday.
At 5 pm ET, Apple (AAPL) was trading up 5.25% at $211.20. It had closed the day down 1.93% at $200.67 a share.
Apple earnings came in at $2.46, beating its EPS estimate by ten cents:
- EPS: $2.46 vs. $2.36 forecast by Refinitiv consensus estimates
- Revenue: $58.02 billion vs. $57.37 billion forecast by Refinitiv consensus estimates
- Q2 iPhone revenue: $31.05 billion vs. $31.10 billion expected, forecast by Refinitiv consensus estimates
- Q2 services revenue: $11.45 billion vs. $11.37 billion, forecast by Refinitiv consensus estimates
- Projected Q3 revenue: $52.5 to $54.5 billion vs. $51.94 billion forecast by Refinitiv consensus estimates
VGT’s industry breakdown looks roughly like this: 20% in systems software, 17% in hardware, storage and peripherals, 16% in data processing and outsourced services, 16% in semiconductors, 11% in app software, and a smattering of several other industries.
Apple, along with Microsoft, represent 30% of VGT’s holdings. This is an important number to pay attention to, as a substantial move in either of these two tech giants can frequently have a dramatic effect on VGT.
Like VGT, iShares U.S. Technology ETF (IYW), Apple and Microsoft again represent roughly 30% of VGT’s holdings, with Facebook and Google also figuring prominently in the mix.
“There’s meaningful upside to the Apple story. I suspect that this year, Apple will be the best-performing FAANG stock,” Loup Ventures managing partner Gene Munster said Friday on CNBC’s Trading Nation segment. “I think this can be closer to $350 [a share]. … I know historically it has not gotten the multiple. But I think that will slowly change.”
When compared to the S&P 500, Apple has outperformed the benchmark index by 14% since the December low. The stock is up 39% since then, and 24% over the past 12 months.
“Tech can be a consumer staple,” added Munster. “While there are fluctuations in the businesses like Clorox and Coca-Cola and businesses like the iPhone, I think the same underlying message is true. We cannot live without Apple. We cannot live without those other staples.”
Apple beats on top and bottom lines, raises dividend by 5%:
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