Apple, Facebook soar past earnings expectations

Shares of Apple and Facebook surged in extended trading on Wednesday, after the two tech giants both posted earnings and revenue that once again exceeded already-high Wall Street expectations.

Apple said sales in China nearly doubled and results topped analyst targets in every category, led by $6.5 billion more in iPhone sales than predicted and Mac computer sales that continue to beat estimates.

The most valuable company in the world - at over $2 trillion - also announced a $90 billion share buyback.

And CEO Tim Cook told Reuters in an interview that the company sees a strong U.S. economic recovery coming.

Apple has thrived through the global health crisis as consumers, stuck at home, stocked up on new devices, upgraded to 5G iPhones and signed up for paid apps and services for fitness and music.

Facebook has also benefited from people being stuck at home, which has led to a surge in online traffic, leading to higher ad spending by businesses.

The world's largest social media company said it expected next quarter's revenue to be stable or grow moderately, but warned that the third- and fourth-quarter growth rates could "significantly" decline, citing a new pop-up privacy notification from Apple that Facebook said could hurt its business.

Video Transcript

- Shares of Apple and Facebook surged in extended trading on Wednesday after the two tech giants both posted earnings and revenue that once again exceeded already-high Wall Street expectations. Apple said sales in China nearly doubled and results topped analyst targets in every category, led by $6.5 billion more in iPhone sales than predicted and Mac computer sales that continue to beat estimates. The most valuable company in the world at over $2 trillion also announced a $90 billion share buyback.

And CEO Tim Cook told Reuters in an interview that the company sees a strong US economic recovery coming. Apple has thrived through the global health crisis as consumers stuck at home stocked up on new devices, upgraded to 5G iPhones, and signed up for paid apps and services for fitness and music. Facebook has also benefited from people being stuck at home, which has led to a surge in online traffic, leading to higher ad spending by businesses.

The world's largest social media company said it expected next quarter's revenue to be stable or grow moderately, but warned that the third and fourth quarter growth rates could, quote, "significantly" decline, citing a new pop-up privacy notification from Apple that Facebook said could hurt its business.