'Safe port in the storm:' Why Apple didn't get hammered after earnings, while Amazon, Google and Facebook did

Apple's earnings received a drastically antithetic absorption from investors than its Big Tech peers Amazon, Google, Microsoft and Facebook.

Shares of Apple were up astir 3.5% Friday morning, the time aft Apple reported net that showed 8% yearly income growth, and contempt misses connected estimates for iPhone and services revenue.

"Apple looks similar a "relatively harmless larboard In the storm," Credit Suisse expert Shannon Cross wrote successful a enactment connected Friday.

But investors fled from different Big Tech stocks this week. Microsoft and Alphabet had their worst days of the year connected Wednesday. Meta had its second-worst time connected Thursday, plunging 24% to prices it hasn't traded astatine since 2016. And Amazon was down astir 10% Frida greeting aft reporting net Thursday.

The reasons varied. Meta struggled with shrinking escaped currency travel arsenic it continued its metaverse spending spree. Alphabet said advertisement income were slowing arsenic YouTube reported its first-ever gross decline. And Microsoft was pressured by anemic guidance and unreality gross that missed expectations. Amazon missed gross estimates and signaled a anemic vacation 4th and narrowing profits.

But Apple present looks a batch much unchangeable than its peers, particularly arsenic fears of a recession commencement weighing connected advertisement income and imaginable vacation spending. It's mostly due to the fact that Apple relies connected hardware and services that radical are inactive buying.

Mac gross was up 25% year-over-year, for example. And portion iPhone gross missed estimates, it inactive roseate 9.67% year-over-year. Services besides popped 4.98% year-over-year, contempt missing expert estimates.

And Apple managed this portion the larger telephone and PC manufacture saw large declines. Worldwide smartphone shipments declined 9% during the 3rd quarter, portion Apple's shipments accrued by 8%, contempt its higher-priced devices, according to an estimation from probe steadfast Canalys this week.

"Demand for premium devices remains intact," wrote Cowen's Krish Sankar successful a enactment connected Friday.

In short, Apple's concern remains strong, and request for its products remains precocious astir the world, adjacent successful emerging markets, bucking downward trends for planetary smartphone income from different brands.

"Following Apple's F4Q22 results, it remains our apical prime and, we believe, volition apt stay a comparative harmless haven for galore arsenic the macroenvironment remains highly uncertain and choppy," Cross, of Credit Suisse, said. Cross added that Apple's results showed the institution continues to turn successful each portion it sells in, contempt caller terms increases and weakening user sentiment.

Apple's quasi-guidance besides was mostly in-line with expectations, versus companies similar Amazon that suggested a weaker vacation quarter.

Apple CFO Luca Maestri said full year-over-year gross would turn successful December, but slower than the 8.1% maturation during the September quarter.

But the stat inactive showed galore analysts that Apple would proceed its income maturation streak that's been successful effect since the commencement of the pandemic. Keep successful mind, adjacent quarter's maturation volition person to beryllium disconnected of a monolithic $124 cardinal basal of income from past year's December quarter.

However, the mode that Apple present gives guidance done information points leaves a batch of country for interpretation, and immoderate analysts judge that the existent 4th could beryllium worse than the marketplace is pricing in. At slightest 1 adjacent thinks Apple's information constituent suggests a down quarter.

"Apple is fundamentally saying revenues are going to beryllium down adjacent quarter," said Bernstein's Toni Sacconaghi connected CNBC's Squawk Box connected Friday, pointing retired that Apple's December 4th has an other week this year.

Sacconaghi said immoderate of Apple's large tech peers besides seemed to person issues controlling costs, whereas Apple remains reasonably thin and profitable.

While Apple CEO Tim Cook told analysts that the institution was seeing the effects of ostentation connected its costs, peculiarly successful logistics, it besides has managed the spot proviso shortage good and said connected Thursday that it had nary silicon shortages during the quarter.

Apple isn't immune to the advertizing slowdown hitting Meta and Alphabet, though Cook said Thursday that ads are a precise tiny portion of Apple's services business.

Add it each up, and it's imaginable to spot wherefore immoderate analysts see Apple to beryllium "recession-resistant."

"Overall, our viewpoint remains accordant that Apple remains recession resilient fixed its products, services and wearables businesses," wrote Piper Sandler's Harsh Kumar.