The Forbidden Fruit of FAANG
RealMoney's Martin Cassidy tackles Apple's Services segment of its business.
"We still expect Services to be the most important part," said AAP Portfolio analyst Zev Fima. "If Services are strong it will be enough to offset any third-quarter disappointment in unit sales."
Analysts on Tuesday reiterated their bullish valuations on the tech giant, expecting Apple to issue earnings of about $2.16 a share, according to FactSet.
CFRA Research's Angelo Zino wrote that the expected introduction of an Apple television streaming platform would help drive Services growth for the company, predicting the segment would comprise nearly 20% of sales and a third of profits by 2019, with Services revenue of $50 billion in 2020.
Apple is expected to release earnings right after the bell on Tuesday.
The tech company will be the final FAANG stock to announce earnings, so it'll be the apple of everyone's eye if it can manage to avoid tanking like Facebook did after its earnings.
And, no, I'm not sorry for that pun.
Lauren Simmons, the youngest and only full-time female stockbroker at the NYSE, sat down with TheStreet's Anders Keitz and Katherine Ross. She discussed a lot of interesting topics.
And, when asked whether she thinks millennials don't invest she—drumroll, please—scoffed and rolled her eyes. So there you have it, folks.
On a more serious note, Simmons tackled some tough subjects, most importantly financial literacy. She has some thoughts on financial literacy.
"Learning credit and savings accounts and what investing can or can't do for you, that should be 1,2,3, courses that should be given at some point while you're younger—definitely by the time you graduate high school," Simmons said. "From there, [you can use] it as a platform to learn more but it definitely is important."
TheStreet's Eric Jhonsa has listed some of the top things to look for when the earnings are released.
Of course, the earnings will heavily rely on Model 3 numbers.
Any fresh comments on Model 3 production rates and targets are worth paying close attention to. As are any remarks about Model 3 reservations—they stood at about 420,000 at the end of Q2—and order activity. During the second week of July, more than two years after it began taking reservations for the car, Tesla opened the Model 3 order process to the general public, albeit while continuing to give reservation holders order priority.
- More on Tesla's Future From TheStreet
Also: Will Tesla offer any update on when it plans to start making the $35,000 Standard Battery version of the Model 3, and in what volumes? Musk previously said the $35,000 Model 3 would enter production in early 2019. For now, Tesla is only taking orders for versions of the Model 3 that cost $49,000 or more.
While Model 3 output clearly picked up in Q2, it's still unknown what kind of margins Tesla saw on delivered cars, amid all of the extraordinary measures it took to hit its production target. Tesla reported in May its Model 3 gross margin (GM) was slightly negative in Q1, and forecast it would be "close to breakeven" in Q2 before becoming "highly positive" in Q3 and staying that way in Q4.
Keep an eye out for the earnings.