Apple has done it again! Tuesday Apple announced another phenomenal earnings report for the first quarter of 2011. Once again Apple had record earnings and record net quarterly profits! This news couldn’t have come at a better time following the headlines that Steve Jobs has taken an indefinite medical leave of absence.
Apple generated $26.74 billion in record revenues with a record net quarterly profit of $6 billion, which comes out to be $6.43 a share. This my friends is a ton of money! Now compare the numbers to this time last year and you will see that Apple is a company with staying power.
$26.74 billion vs. $15.68 billion- That’s an increase of roughly 71% in revenue growth.
Net profit was $6 billion vs. $3.38 billion an increase of 78% in earnings.
Lastly, earnings per share was $6.43 vs. $3.67 a share a huge gap of 75% from a year ago.
The numbers are staggering! On top of that Apple had record sales of the iPhone, iPad, and Mac. People are snatching up Apple products left and right. I have never seen a company with multiple products be in such high demand.
Apple sold 19.45 million iPods, 16.24 million iPhones, 7.33 million iPads, and 4.13 million Macs. I don’t see the demand slowing down anytime soon folks!
I have had quite a few inquiries about buying Apple stock and many are worried about the stock price being so high. My response is don’t fret over $332.68 a share. Look at the P/E and you will see that this stock is cheap. Apple still is my favorite stock. They have amazing products and that’s the bottom line. I talk about various other companies on this blog, but if I could only pick one stock and never have an opportunity to sell, it would be Apple. I said this in one of my previous posts and I continue to believe Apple is the single best company in the stock market today.
With the release of the new iPhone 4 in February to all Verizon customers I believe this will be a major catalyst for increased revenues. The iPhone 4 has the potential to be a game changer in 2011. With 93 million Verizon customers readily available, Apple should have plenty of room to grow their iPhone sales. It’s a beautiful thing! Currently Apple is struggling with keeping up with the demand for the iPhone, but I wouldn’t let this discourage anyone from buying the stock. Apple has a great management team and I have faith they will address this high quality problem. Apple is a buy!
Have a great night!
Don't worry about the sell off in stocks. The pain will subside soon!
Google destroyed earnings in after hours! Hopefully this will put some fuel on the fire for tech stocks tomorrow.
Clay-
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