Fast Money Blog- 5/2/25

The big news on Wall Street this week was the release of Apple’s Q2 2025 earnings report. 

For the quarter, Dow component Apple, Inc. (AAPL) had top-line revenue of $95.4 billion, a rise of 5% year-over-year.

Good News:

iPhone revenue came in at $46.8 billion in the quarter, up almost 2% year-over-year. Moreover, Apple increased iPhone sales by more than 10% in Japan, India and the Middle East. 

Apple’s Services Segment, which includes apps, Apple Music and Apple Pay, brought in $26.6 billion for the quarter, up 11.6% year-over-year.

All of this helped the company make $24.78 billion in quarterly profit, a 4.8% increase year-over-year. 

Tyrone, what does all of this mean for Apple going forward?

Right now, the answer doesn’t look particularly good.

Apple CEO Tim Cook stated that President Trump’s Chinese tariffs have already started to to cut into its business. He estimates that the tariffs that are now in place will cost the company $900 million in the current quarter. 

Although Apple has announced plans to source more than 19 billion chips from the US in 2025 and use India as a pivotal production hub for its US-bound iPhones, it remains to be seen how tariffs will affect the future.

This is why I don’t think Apple’s stock price will be driven up significantly before the next earnings period. I believe the stock will stay range-bound, fluctuating daily about $5 a day. 

Now onto Microsoft Corp, (MSFT)

MSFT released their Q3 2025 earnings with revenue of $70.07 billion, up 13% year-over-year.

Some Revenue Highlights:

Microsoft’s Intelligent cloud had quarterly revenue of $26.8 billion, up 20% year-over-year. 

The Productivity and Business Processes segment, which includes Dynamics, LinkedIn and the Office suite of products, brought in $29.9 billion, an increase of 10% year-over-year.    

The company also reported that their More Personal Computing revenue came in at $13.4 billion, up 6% year-over-year.

Incredibly, profit rose to $25.8 billion, up 18% year-over-year. 

As far as future growth, Microsoft expects to continue to see strong demand for their cloud and AI products. 

I believe MSFT will continue to do well.  MSFT stock rose after earnings because they are a software company and don’t heavily rely on imports from China. 

Just a note: In this market 3-week out-of-the-money covered calls work best.

Tyrone Jackson, The Wealthy Investor