Apple stock jumped more than 7 percent in after-hours trading Tuesday after the company reported first-quarter earnings of $39.2 billion, driven by sales of its iPhone and iPad tablet.
The company sold 35.1 million iPhones in the quarter that ended March 31, beating analyst estimates. And the tech giant posted 11.8 million iPad sales, about 1 million short of analysts’ expectations.
Motley Fool analyst Joe Magyer, Apple’s rally in after hours trading indicates that the stock is still strong.
“The stock is up over 6 percent; in market cap, that’s the equivalent of Yahoo plus Netflix and all of Chipotle, just in after hours,” he said.
Apple’s stock had been falling in part due to chatter that carriers may want to cut back on subsidies for the iPhone. Earlier this month, BTIG analyst Walter Piecyk downgraded Apple from buy to neutral in part, Fortune reported, because he believes carriers will be less open to subsidizing the iPhone. When AT&T posted profits due in part to paying fewer subsidies on iPhones due to lower sales, Apple’s stock fell further, closing at $560.28.
Yet while AT&T and and Verizon reported lower iPhone sales, Apple reported Tuesday that it had seen strong phone sales in overseas markets.
Magyer said that he expects Apple to get a good bit of its share price back, though not all of it.
“The market got a bit ahead of itself with the stock — no stock is a buy at any price — and the market has been practically been tripping over itself to pat Apple on the back.”