Digging in on Apple and Amazon's quarters - YouTube

Channel: CNBC Television

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sticking with tech earnings let's take a
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look at the after hours action in apple
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and amazon both the calls are underway
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right now let's bring in vast money
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friend gene munster of loop ventures for
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more reaction to the numbers he's been
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dialed into the call
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so gene what are the highlights so far
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let's start with apple
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melissa they guided revenue in line with
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expectations you have to do some
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decoding of luca's commentary
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basically there's a big fx impact a six
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percent fx impact in the september
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quarter you highlighted this going into
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the call that in fact happened you need
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to
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factor that in when you do that
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essentially it looks like that the
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numbers for the september quarter and
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the top line are going to be in line
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with expectations on the profitability
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side they gave margin guidance that was
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fractionally below where the street is
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at for september but they typically
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exceed that guidance so i think when you
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kind of put it together it was
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essentially a coast is clear with the
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september quarter this is something that
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i was most nervous about going into the
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call just given some of the discounting
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that they've been doing in china and i
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was happy to see uh them guide in line
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yeah and for amazon gene
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uh amazon all the good news came on they
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uh when they put the press release out
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the one takeaway is this is accelerating
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revenue from seven percent in the june
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quarter to 17
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why is amazon outpacing walmart the
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reason is that e-commerce is still in
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its infancy and amazon is reaping that
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about 20 is bought online in the us and
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amazon's benefiting from that
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gene i'm going to ask you to pull out
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the history books if there are history
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books for this and that is how do these
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how do these two stocks react in general
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to
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um you know recessionary environment and
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i'm asking this because you know we have
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this sort of question if rate hikes
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impacts aren't for quarters in the
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future and we're getting a snapshot for
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what was the second quarter and for the
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third quarter at this point gene we
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haven't actually seen any impact on the
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consumer yet so maybe these these
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results while good aren't really
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reflective of what the environment will
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be
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well the history book would say to just
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look at the body of data that we have
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and in this case we have data points
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from some of the big tech companies and
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some of the traditional companies and my
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sense is that the traditional companies
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big companies are stumbling they're
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missing numbers they are guiding down
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but you see the results from i guess
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apple in particular the strength in it
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and i think what's going on is very
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simple is uh there is a break here and i
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think it underscores the dependency that
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we have whether it's on apple or amazon
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the dependency that we continue to have
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not just about the last two years but
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just year in and year out and i would
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so i think that they will do better
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we're seeing them do better which means
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that investors can sleep better at night
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owning companies like apple and i would
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just offer one final piece that doesn't
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mean that apple is going to be immune to
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any of the these headwinds things can
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change but this was a really tell the
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september guide was a huge tell about
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the strength that they have and they're
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a conservative team and they're
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optimistic about september so the simple
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takeaway is every company is going to be
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impacted and apple in particular is
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doing a better job because people just
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simply want their products more
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gene thanks always good to speak with
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you gene munster
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we should note that apple has paired
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some of its gains in the after session
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now up 2.8 versus the 4 that we saw
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right after the print courtney it's back
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the notion that big cap tech
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may be defensive maybe the stock you
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want in a growth environment in a
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contraction environment i mean
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it's it's the all-weather stock do you
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believe that
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um yeah i'm a little bit cautious on
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that but what i do like like take apple
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for example they do have a lot of cash
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on their balance sheet and i think that
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is something that could really allow
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them to whether through a down period
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better than some of their competitors
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are better than some of your smaller
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companies um my hesitation here is even
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though it's had come down in price
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significantly it's still trading at a
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higher valuations in this 10-year
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average um and it is trading actually
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higher than nasdaq is so
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you know i think i would still want to
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look for some of your companies that are
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a little cheaper here we do own it i do
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want to hold it for the long run i just
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don't necessarily want to be actively
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adding a ton more cashier
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you