PTON Woes, META Flexes, and Apple's Core Earnings Unwrapped

Good Morning,

Welcome to another edition of ChartWiz, where we visualize financial data in bite-sized portions. In today’s edition we break down recent earnings, including Peloton’s crash from Covid peaks, Meta’s dominance, and more.

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RECENT EARNINGS BREAKDOWN

Peloton (PTON) - Share Price Tanks on Poor Earnings

1. Revenue Decline: Peloton's total revenue experienced a 6.2% year-over-year decline, totaling $744 million. This downturn reflects challenges in market conditions or sales.

2. Increased Net Loss: The company reported a higher net loss compared to the previous period, reflecting increased costs or decreased efficiency.

3. Subscription Growth vs. Profitability: The growth in subscriptions might not be translating effectively into profitability, suggesting that customer acquisition or retention costs could be high.

4. Segment Performance:

   • Hardware/Fitness: This segment, representing 42.8% of total revenue, struggled with profitability, reporting gross margins of just 4.4%. This indicates significant cost pressures or pricing challenges within the hardware sector.

   • Subscriptions: Contrasting with hardware, the subscription segment accounted for 57.2% of revenue and boasted a healthy 67.3% gross margin. This demonstrates the higher profitability and potentially more sustainable revenue stream from subscription services compared to hardware sales.

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RECENT EARNINGS BREAKDOWN

Meta Platforms (META) - Shares up 30% on a blow-out quarter.

Blowout earnings ✅

$50B in share buy-backs ✅

Biggest quarter ever ✅

COMPANY DEEP DIVE

Apple Inc (AAPL) - How do they make money?

A good quarter for Apple may not have been “good enough”. Shares were down as much as 3% in Friday’s trading action, but ended up recovering to flat for the day. $120B in revenue last quarter, but how does that get broken down? Let’s take a look.

1. Products vs Services Net Sales: Product sales were $96.458 billion, while services reached $23.117 billion.

2. The gross profit percentage for Apple's hardware (products) for the most recent quarter is approximately 39.41%.

3. The gross profit percentage for Apple's services for the same period is approximately 72.83%.

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HISTORICAL RETURN

How $10,000 Invested in Apple Inc (AAPL), Peloton (PTON), and Meta Platforms (META) Would Have Returned Just 1 Year Ago.

Peloton (PTON), once a darling of pandemic stocks, has seen its fortunes wane dramatically, with a $10,000 investment dwindling down to just $2,497. In stark contrast, Meta Platforms (META) has silenced the skeptics with a stunning rebound, that same investment ballooning to an impressive $25,162. Meanwhile, Apple (AAPL) has been a model of steady growth, turning a $10,000 investment into a solid $12,323.

WORD FROM WIZ

That’s all we have for you in today’s edition of ChartWiz. If you found this valuable, please consider forwarding it to a friend.

Want to see a chart style or something we don’t have? Reply and let us know!

Have a fantastic week!

-Wiz

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