Apple store

Apple shares fall as earnings slump

This week, Apple shares drop thanks to the iPad and Mac, Shopify surges as make-or-break decisions prove profitable, and Pinterest’s new strategy pays off. Let’s unpack it all in The Weekly Scoop!

💡 If you want these updates delivered to your inbox every Friday, sign up here

Green ornament

Apple shares dip 3% as sales figures fall 🍏

iPad and Mac disappoint: Last night, Apple reported its fiscal Q4 earnings and whilst it beat analyst expectations for sales, its overall sales fell for the fourth quarter in a row. Every one of its devices except the iPhone declined year over year, with big drops for the iPad and Mac.

  • Victim of their own success: It's hard to criticise the world's most valuable company, but if there's one thing that keeps Apple investors up at night, it's how reliant it is on the iPhone. For years, Apple has attempted to replicate the success of the iPhone with other devices, but they simply lack the smartphone’s magic.

  • Good news for services: Still, shares are up around 33% so far this year and the majority of this quarter didn't factor in new sales from the iPhone 15. Apple services like Apple TV+, Apple News and Apple Arcade have also improved, growing $3.1bn revenue from this point last year.

Stock analyst rating stating strong buy

*Ratings are provided by analysts at Zacks, a leading investment research firm

Shopify stock surges 22% as it smashes Q3 earnings 🛒

Shopify shareholders are all smiles: Shopify also reported its quarterly earnings last night and the Canadian e-commerce company blitzed Wall Street's expectations, and even gave a strong forecast for the remainder of the year, much to the joy of investors. 

  • From red to green: Net profit for the quarter was $718 million, which is staggering given this point last year, Shopify reported a quarterly loss of $158 million. So, what has it got right? Well, Shopify has made three make-or-break decisions that all appear to have worked out for the best…

  • Redundancies, partnerships and acquisitions: It cut 20% of its workforce to reduce its expenses, it announced a partnership with Amazon that allows its merchants free Prime delivery on Amazon pages, and finally, it sold its logistics business to Flexport. Shopify said it expects 2023 revenue to grow at a mid-twenties percentage rate on a year-over-year basis, which has investors excited.

Stock analyst rating saying hold

*Ratings are provided by analysts at Zacks, a leading investment research firm

Pinterest surges 20% as CEO’s new strategy pays off 📍

A profitable partnership: Avid readers of The Weekly Scoop will remember that around a month ago, Pinterest said early test results of its ads with Amazon were looking promising. Well, the social and image sharing company wasn’t lying.

  • Pushing purchases: Bill Ready, who took over as CEO last year, has been focusing on making Pinterest more ‘shoppable’, or in other words, trying to monetise the business better. 

  • If you can’t beat them, join them: Ready achieved this by striking a multiyear partnership with Amazon to host their ads on Pinterest feeds. According to Ready, it’s a ‘multi-quarter effort’ with most revenue not appearing until early next year, which has investors feeling optimistic about the coming months.

Stock analyst rating stating strong buy

*Ratings are provided by analysts at Zacks, a leading investment research firm

What have we learned this week? 🤓

  • Apple is trying to diversify: In an effort to protect its own business model, Apple is constantly trying to create new revenue streams. The service division is performing well, but devices that aren’t the iPhone need a boost. 

  • Amazon loves B2B partnerships: Both Shopify and Pinterest have struck B2B (business to business) relationships with Amazon, and both are reaping the rewards. It goes without saying, Amazon will undoubtedly be benefiting from the partnerships too.

  • Pinterest has almost half a billion active users: Not every user will make a purchase via the app, but with 482 million active users, it serves as a huge demographic it can serve ads to, and make money from.

Stock announcements this week 👀

  • Uber: On Tuesday 7th November, Uber will release its quarterly earnings. Last quarter, Uber announced its net profit for the first time ever. How will earnings fare this time?

  • AMC: On Wednesday 8th November, AMC will release its quarterly earnings. Shares are up 28% this month largely down to the success of Taylor Swift’s ‘The Eras Tour’ film.

  • Disney: On Wednesday 8th November, Disney will release quarterly earnings. Investors eagerly await to see how much the price hikes of Disney+ have helped the stock.

Thanks for tucking in! Want to receive these updates every Friday? Sign up here or share via WhatsApp with your friends.

*Figures and ratings correct as of November 3rd 2023.

Past performance does not guarantee future results. Capital at risk when investing. This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.

Meet the authors

James Ashoo photo

James Ashoo

Senior Content Writer

James has been investing for over five years. His aim is to explain the hard stuff, easily! When he's not chewing your ear off about stocks and crypto, he'll most likely be telling bad jokes.

Harjas Singh

Harjas Singh

Chief Product Officer & Co-Founder

With a wealth of experience in fintech, Harjas is the man in the know when it comes to all things product. Investing features, chatting capabilities and thriving communities – he oversees all development on the Shares app!

Harry Harrison

Harry Harrison

Finance Writer

Harry is an experienced business writer, with a love for all things tech. In his free time, he enjoys reading, playing sport and winning at chess. He also loves posting inside the Shares app!