In the last post, I shared my thoughts on the quarterly earning for Singapore Reits and companies. For this post, I will be touching on three US companies.

  • Apple
  • Microsoft
  • Shopify

AAPL produced a good results with revenue up by 9% and diluted EPS up by 8%. When I first initiated my position in AAPL in December 2018, I was attracted by its recurring earning through its service segment. Indeed, this segment continues to grow and now make up 20% of its revenue. During the conference call, it is highlighted the forex is going to provide some headwind to service revenue and it won’t grow at this quarter’s rate. It’s a minor point to me as I continue to see the trend of growing installed base which means there’s still tailwind for its service to grow larger.

MSFT produced a mixed bag too. Azure continues to drive the growth but PC segment is facing some headwind. From the conference call, it does seem that coming quarters will see some volatility in Cloud segment’s number. Overall they are not slowing down their investment as they see current moment as opportunity to gain further market share. That would be good news to ANET since MSFT is one of its major clients.

Shopify delivers a good quarter with growth in GMV and MRR. Growth rate is not as high as last year but given the the current situation and coming off a high base from the super growth over the past 2 years, it is a good performance. The loss is expected as it has been planned that this is a year of investment. With the acquisition of Deliverr, they will be improving the logistics segment for their merchants. I feel excited reading their presentation deck and earning call transcript as I could sense the enthusiasm and effort they are putting in to help merchants to use their platforms. They will continue to be loss making for the next few quarters but I am confident that their investment will bore fruits in time to come.

Do take a look at their presentation slides if you want to know what they are doing for their merchants.

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