Today in the Market (8/3/2023)

Good Evening! On Thursday, US markets declined as they made efforts to claw back from the sell-off triggered by the US debt downgrade from the previous day.

The S&P 500 fell 0.25%, whereas the Dow Jones decreased by 0.19%. The Nasdaq Composite fell 0.10%.

THE DECLINE CONTIUNES

Apple (AAPL) released its Q3 fiscal year financial results after the market closed on Thursday. The company reported iPhone sales that were lower than analysts’ expectations, with revenue falling 1.4% compared to the previous year. This marks the third consecutive quarter in which Apple has observed a decrease in revenue.

  • Revenue: $81.80 Billion vs. $81.55 Billion Expected
    • iPhone revenue: $39.67 Billion vs. $39.79 Billion Expected
    • Services revenue: $21.21 Billion vs. $20.77 Billion Expected
    • Wearables revenue: $8.28 Billion vs. $8.38 Billion Expected
    • Mac revenue: $6.84 Billion vs. $6.37 Billion Expected
    • iPad revenue: $5.79 Billion vs. $6.33 Billion Expected
  • Earnings Per Share: $1.26 vs. $1.20 Expected

Going forward… During discussions with analysts, CFO Luca Maestri expressed that the company anticipates a growth in revenue for iPhone and services, whereas Mac and iPad are projected to experience a decline of double digits. This decline is due to the challenging comparisons with previous periods.

LET'S TRY THIS AGAIN

Amazon has initiated a significant restructuring of its grocery operations, marking the most extensive transformation since its acquisition of Whole Foods in 2017. The reformation is being undertaken in response to the challenges faced by the company in its attempts to revolutionize the grocery sector. So what are these changes?

  • The Amazon Fresh delivery service has recently been made accessible to individuals who are not subscribed to Amazon Prime in 12 cities. There are intentions to extend this service to a nationwide scale by the conclusion of the current year.
  • The refurbished supermarkets will incorporate more vibrant colors, include Krispy Kreme kiosks positioned near the entrance, and offer self-checkout lanes in addition to their E-ZPass-like “Just Walk Out” system.
  • The integration of the online shopping carts for Amazon Fresh, Amazon.com, and Whole Foods will result in a unified platform, thereby eliminating the need for distinct checkout processes.

Only time will tell though… Amazon has faced legal challenges in the past due to delays in opening Amazon Fresh stores, resulting in four lawsuits. Additionally, the company recently laid off hundreds of store workers in the grocery sector. According to a former employee’s statement to the Washington Post, the current year has the potential to significantly impact the success of Amazon Fresh.

Scroll to Top