Technology Roundup – Apple facing multi-state probe, Facebook Q2 2020 Earnings Preview

Published on: July 30, 2020
Author: Amy Liu

Apple facing multi-state probe for iPhone throttling – Reuters

Arizona is leading a multi-state U.S. probe into whether Apple’s (NASDAQ:AAPL) slowing of older iPhones violated deceptive trade practices, according to documents viewed by Reuters.

investigators behind the probe, which has been going on for nearly two years, have asked the tech giant for data related to the “unexpected shutdowns” and throttling of older devices through power management software.

The throttling issue came to light in 2017, leading to Apple’s public apology and price cut on battery replacements.

Last week, a separate document showed that Texas’ AG might sue Apple in connection to a multi-state investigation, but the document didn’t specify charges.

Apple CEO Tim Cook is appearing before the House Judiciary Committee’s Antitrust subcommittee today with live updates available here.

Facebook Q2 2020 Earnings Preview

Facebook (NASDAQ:FB) is scheduled to announce Q2 earnings results on Thursday, July 30th, after market close.

The consensus EPS Estimate is $1.38 (-30.7% Y/Y) and the consensus Revenue Estimate is $17.36B (+2.8% Y/Y).

Expected DAU of 1.75B, MAU of 2.63B, total ARPU of $6.63.

Over the last 2 years, FB has beaten EPS estimates 100% of the time and has beaten revenue estimates 75% of the time.

Over the last 3 months, EPS estimates have seen 6 upward revisions and 6 downward. Revenue estimates have seen 21 upward revisions and 13 downward.

TSMC leads semi gainers after AMD’s lifted outlook

The Philadelphia Semiconductor Index gains 2.1% today after AMD raised its FY revenue growth outlook, driven by PC, gaming, and data center strength.

Top gainers include AMD foundry partner TSMC (TSM +8.4%), Entegris (ENTG +3.7%), NXP Semi (NXPI +3.9%), and equipment stock Lam Research (LRCX +3.6%).

The Philadelphia Semiconductor Index is up 36.5% in the past year, slightly ahead of the VanEck Vectors Semiconductor ETF (NASDAQ:SMH) though the ETF has still outperformed the tech sector (NYSEARCA:XLK).

Amazon Q2 2020 Earnings Preview

Amazon (NASDAQ:AMZN) is scheduled to announce Q2 earnings results on Thursday, July 30th, after market close.

The consensus EPS Estimate is $1.62 (-69.0% Y/Y) and the consensus Revenue Estimate is $81.27B (+28.2% Y/Y) vs. company guidance of $75-$81B.

Expected AWS Revenue of $11.02B and operating income of 3.01B.

Expected gross margin +40.3%, operating margin of +1.5%.

Over the last 1 year, AMZN has beaten EPS estimates 75% of the time and has beaten revenue estimates 50% of the time.

Over the last 3 months, EPS estimates have seen 0 upward revisions and 34 downward. Revenue estimates have seen 31 upward revisions and 4 downward.

Apple Q3 2020 Earnings Preview

Apple (NASDAQ:AAPL) is scheduled to announce Q3 earnings results on Thursday, July 30th, after market close.

The consensus EPS Estimate is $2.07 (-5.0% Y/Y) and the consensus Revenue Estimate is $52.56B (-2.3% Y/Y).

iPhone Revenue is expected at $22B, Services Revenue of $13.13B.

Expected gross margin of 38%.

Over the last 2 years, AAPL has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.

Over the last 3 months, EPS estimates have seen 14 upward revisions and 16 downward. Revenue estimates have seen 15 upward revisions and 14 downward.

Technology