Apple (NASDAQ:AAPL) stock fell 2.07% on May 9. Shares have jumped 28.6% in 2019 so far. The NASDAQ has roared back to all-time highs this spring after suffering a sharp retreat in the fall of 2018. Apple stock has not managed to bounce back to its same highs.
The company released its second-quarter results on April 30. Revenue in Q2 2019 reached $58 billion, which represented a 5% decline from the prior-year. Earnings per diluted share fell 10% year-over-year to $2.46. However, services revenue hit an all-time high of $11.5 billion.
Apple will launch its revamped streaming service Apple TV+ for its products this month, and for other devices later this year. The company has a huge war chest which should make things interesting as it looks to compete against Netflix, Disney, and others.
Apple’s board of directors announced a 5% hike in its quarterly dividend to $0.77 per share. This represents a modest 1.5% yield.
For the third quarter Apple projects revenue between $52.5 billion and $54.5 billion and a gross margin between 37% and 38%. Apple also announced a $75-billion share repurchase program. Share buybacks rose to record levels in 2018 and companies are splurging again in 2019.
Apple’s forward P/E of 17 makes it a little pricier than the industry average. Shares had an RSI of 49 as of close on May 9. This puts Apple in neutral territory as far as this indicator is concerned.
