Apple’s Spectacular Earnings Aren’t Lifting the Stock. The Worry Is Growth.

Apple’s Spectacular Earnings Aren’t Lifting the Stock. The Worry Is Growth.

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Apple



reported an insanely great March quarter, with revenues and profits far higher than expected. It exceeded expectations in every product line and in every geography. And to top things off, Apple raised its dividend by 7%, while increasing its stock repurchase plan by $90 billion. 

At least a dozen analysts raised their targets for the stock price (ticker: AAPL) on Thursday, and every single one of them raised their earnings estimates in response to the results. Goldman Sachs analyst

Rod Hall,

long one of the most prominent Apple bears, threw in the towel, raising his rating to Neutral from Sell. His previous view that iPhone sales would disappoint during the pandemic was "clearly wrong,“ he wrote.

Apple reported growth of 66% in iPhone sales, 70% for Macs, 79% for iPads, and 25% for Wearables, with 27% growth in Services. The company posted 56% growth in Europe, and a remarkable 88% in China.

It was pretty obvious heading into the quarter that estimates were too low, but the fact that the stock