ð PRO: This Week in Visuals
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Today at a glance:
ðąApple: China Slowdown
âïļ Amazon: Margins Expand
âūïļ Meta: AI Investments Ahead
ð Eli Lilly: Zepbound Sales Miss
ðģ Visa: International Restructuring
ðģ Mastercard: Resilient Spending
ð Abbvie: Immunology Shift
âïļ AMD: Data Center Acceleration
ð McDonald: E. coli Outbreak
𧎠Amgen: MariTide Update
ð Uber: Record Profit With a Catch
ðĶ Comcast: Cable Spinoff Considered
ð Pfizer: Paxlovid Raise
ðïļ Booking: Demand Resilience
ð§âðŧ Intel: Turnaround Signs
ðģ Paypal: Braintree Boosts Margins
ðŊ Chipotle: Growth Moderation
ðĄ Cadence: Upgraded Outlook
ð Merck: Keytruda Strength
ð Coinbase: Lower Trading Volume
âïļ Atlassian: New CRO & Raise
ð Ford: EV Losses
ð Kraft Heinz: Lunchable Woes
ðŪ Electronic Arts: Sports Titles Boost
ðū Roblox: Bookings Soar
ð Global Payments: Streamlining Continues
ðŠķ Robinhood: Promotion Drag
ðŧ Snap: Ad Revamp
ð― Reddit: Profitable Growth
ðĶ SoFi: Financial Services Surge
ðŽ Twilio: AI Integration
ðš Roku: No More User Reporting
ðŧ Paycom: Guidance Reaffirmed
ðĶ Etsy: GMS Keeps Sliding
ðē Peloton: New CEO (Already)
ð§ââïļ Teladoc: Better Help BetterHelp
1. ðąApple: China Slowdown
Apple reported a record-breaking September quarter, with revenue rising 6% to $94.9 billion ($0.5 billion beat). iPhone sales rebounded across all markets, growing 6% to $46.2 billion ($1.2 billion beat). However, other products, including iPads and wearables, fell short of expectations. The Services segment continued to gain momentum, now contributing 42% of Appleâs gross profit, up from 39% a year ago.
Despite these positives, concerns linger around sustaining growth, particularly given a slight year-over-year revenue decline in China. Apple provided a soft outlook for the holiday season, with expected low- to mid-single-digit revenue growth. Management remains optimistic about the upgrade cycle, bolstered by new Apple Intelligence AI features. Early signs are positive, with the latest iOS 18.1 getting adopted twice as fast as the year-ago software update.
Sidenote: Apple incurred a one-time charge of approximately $10 billion in unpaid taxes after losing a court case in Europe, contributing to a larger-than-usual tax expense this quarter.
2. âïļ Amazon: Margins Expand
Amazon saw an 11% revenue growth, reaching $158.9 billion ($1.6 billion beat) and a record $17.4 billion operating profit. AWS, the cloud computing division, saw a 19% revenue increase (in line with projections) and exceeded operating income estimates, with an impressive 8-point margin expansion to 38%. The online retail business and advertising sales exceeded expectations, demonstrating robust growth across all segments.
Amazonâs cost-cutting and streamlined logistics have allowed for significant investments in tech infrastructure, especially in AI services. Management shared an upbeat Q4 outlook, projecting $18 billion in operating income (a $0.5 billion beat), which reassured investors amid ongoing AI investment. Next week, weâll dive deeper into the report, visualizing market share shifts in cloud infrastructure and advertisingâstay tuned!