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Motley Fool Hidden Gems Investing

Earnings-Palooza and a Meaty IPO

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 3 May 2019

⏱️ 39 minutes

🧾️ Download transcript

Summary

Apple surprises. Alphabet stumbles. Berkshire Hathaway loads up on Amazon. And Beyond Meat serves up a big IPO. Analysts Andy Cross, Ron Gross, and Jason Moser discuss these stories and dig into the latest earnings from Arista Networks, CBS, Mastercard, Shake Shack, Shopify, Spotify, Square, Twilio, Under Armour, and Wayfair.   Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money. It's the Motley Fool Money

0:20.1

radio show. I'm Chris Hill, joining me in studio this week's Senior Analyst Jason

0:23.4

Moser, Andy Cross and Ron Gross. Good to see you as always gentlemen. Hey Chris.

0:27.9

It is earnings, Paloza. We have got so many stories. We don't even have a guest this

0:31.7

week, but as always, we will give you an inside look at the stocks on our radar. And for the

0:36.1

second week in a row, we begin with a company joining Club Trillion, if only for a short

0:41.5

time. Yes, Apple's market cap. Briefly, Cross the $1 trillion mark after its second quarter

0:47.6

report showed double digit growth in the services division and the wearables division. And

0:53.1

that's good, Andy, because the iPhone division revenue was about $6.5 billion lighter than

0:58.4

a year ago. Yeah, moving in the wrong direction there. It's really the wearables and services

1:02.8

as Apple continues to transition away from the iPhone. The services now make up 20% of

1:07.8

total sales up from 16% last quarter. Gross margins two times as high as on the product side.

1:14.7

So really the new services Apple card coming on. Apple Arcade, which is mobile gaming,

1:19.2

is streaming. Obviously, we've been talking a lot about Apple news. It's actually starting

1:22.8

to have a lot more relevance now. The wearables themselves, just the wearables, Chris, was

1:27.8

up 50%. So that's things like AirPods and the Apple Watch. So as they continue to push

1:33.5

and push further away from the iPhone transition away from the iPhone, which the sales have

1:37.8

not been good. I think they had the worst quarter of iPhone sales. The steepest drop of

1:42.8

all time. It's really about the wearables. And that's good for the profit picture. Revenue

1:47.0

is not growing. They continue to buy back a load of stock that drives the stock price

1:51.4

up to basically back where it was six months ago and almost that trillion dollar mark as

...

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