Tech like Visa, Microsoft, and Apple reported their Q3 earnings in late July, expectations were high, and they did not disappoint investors.
Visa’s quarter three was higher than expected, posting a $1.49 earnings per share on sales amounting to $6.13 billion. International revenue increased by 54% to $1.7 billion. Payments volume increased by 34%, an improvement on Q2’s 11%. Cross-border transactions volumes, a key figure for the company, increased by 39% to $42.6 billion and 53% in Europe alone. Visa’s also entering the cryptocurrency market with plans to allow payments in USD Coin. The stock is on the growth path, currently trading at $238 per share.
Apple is well on its way to reaching a $10 trillion valuation. Their sales volume reached record highs in June, despite the Covid-19 threat. Their revenue increased by 36%, and net income was up 92%. Many businesses are switching their equipment to Apple and therefore contributed to their growth figures.
Apple has outperformed earnings expectations for this quarter, with iPhone sales up by 50%. However, a shortage in silicon supplies could impact iPhones and iPads production in the next quarter. Apple is currently trading at $147.36 per share.
Microsoft’s market cap is currently around $2.2 trillion, making them the world’s most valuable software company. They reported revenue for Q3 of $46.2 billion, growing by 21% since last year. On top of that, they generated a net income of $16.5 billion, much of it contributed by its cloud computing services—their Intelligent Cloud accounting for 30% of their revenue. Microsoft’s shares reached a record high of $290 in July following its quarterly earnings report.
Tech stocks are booming
The US stock indices reached record highs as investors are finding confidence in tech stocks again. Apple and Microsoft are listed as the top 20 constituents on the Nasdaq and Visa listed on the Dow Jones. These three stocks are displaying consistent growth amidst the pandemic and turbulent global economy.
Investors noted the rising infections and opted to buy stocks of companies that will benefit from the ‘working from home’ conditions.
The three stocks managed to post excellent earnings despite the Covid-19 headwinds but most importantly, the long-term outlook remains solid.