Apple and Palantir Earnings Give Investors 2 Reasons to Reconsider Buying Dips
Market Analysis by Louis Navellier covering: Apple Inc, Palantir Technologies Inc. Read Louis Navellier's Market Analysis
Any dips in Apple (AAPL) and Palantir Technologies (PLTR) are great near-term buys.
Apple announced that its latest quarterly revenue rose 12% to $114.48 billion and its operating earnings rose 14% to $2.10 per share. Apple posted a 0.9% revenue surprise and a 5% earnings surprise. The big news is that Apple’s free cash flow rose by $136 billion in its fiscal year, so it has plenty of money to spend on AI, potential acquisitions, etc.
Palantir Technologies announced that its third-quarter revenue surged 96% to $2.31 billion and its operating earnings rose 95% to 44 cents per share. Palantir Technologies posted a 6.5% revenue surprise and a 7.3% earnings surprise. The good news is that Palantir Technologies’ commercial revenue rose 148% to $984 million, so it is becoming less dependent on government contracts.
We also have earnings announcements from Advanced Micro Devices (AMD) and Super Micro Computer (SMCI) to look forward to this week.
We are also in the midst of robust GDP growth that appears to be accelerating as tech companies announce rising order backlogs. As evidence of strong GDP growth, the Institute of Supply Management (ISM) reported that its manufacturing index rose to 55.5 in October, up from 54.5 in September. The ISM manufacturing index was also well above economists’ consensus estimate of 54.5. This was the second-highest monthly reading in the past four years and the tenth straight month of expansion in the manufacturing sector. Fully, 12 of the 15 industries surveyed by ISM expanded in October.
The upcoming G-20 meeting in Doral, Florida is shaping up to be very tense. At a preliminary meeting in Atlanta, top diplomats and envoys from China and Russia were not able to agree on much of anything. As an example, these rifts have apparently scrapped plans for a group photo session, since European diplomats objected to being photographed with Sergey Lavrov, Russia’s top diplomat. Secretary of State Marco Rubio chaired the Atlanta meeting, and it will be interesting what, if anything, the G-20 will be able to agree on and whether there will be a joint statement. Obviously, Rubio is a skilled negotiator, but the European funding to Ukraine to bomb Russian energy facilities is a rift that may not be able to be resolved.
The Trump Administration has made it clear that it no longer supports Europe’s proxy war on Russia via Ukraine. As a result, the expectations for the upcoming G-20 meeting are dismal. The only good news is that the U.S. is an oasis from much of the world’s problems.
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Louis Navellier and his family own Alphabet Inc (GOOG), Apple (AAPL), Palantir Technologies (PLTR), Super Micro Computer (SMCI), and Advanced Micro Devices (AMD).