Apple and Facebook are the last of the top five U.S. tech companies by market value to release their quarterly results which should happen later this week. They are to follow reports already released from the other tech giants Alphabet, Microsoft and Amazon.com which came out last week.
Those reports impressed analysts so much that it has fueled a confidence frenzy all over Wall Street.
“If we look at the lion’s share of the numbers, they’re performing above expectations,” said Daniel Morgan, a portfolio manager at Synovus Trust, which owns shares of Apple worth about $41 million and shares of Facebook worth $68 million.
“It gives validity to my position, which is that tech is, by far, the most exciting sector,” Morgan said. – Fortune.com
Shares for both Facebook and Apple hit record highs on Tuesday, thus adding to the already high 16% push of the S&P 500 technology index this year alone. And with President Donald Trump’s plans calling for steep corporate tax cuts and easing of tax restrictions on profits that are earned abroad, Apple along with other technology companies would be able to return more cash to shareholders.
“Technology company earnings are expected to have grown 17.7% in the latest three months, the strongest quarterly expansion since 2014, according to Thomson Reuters I/B/E/S.” – Fortune.com
Apple is expected to report a 4.8% revenue increase when it reports Tuesday and Facebook a 45.6% increase in revenue in it’s reports Wednesday.
Technology is a big business and certainly the wave of our future.