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Apple Reports $10.2 Billion in Net Profits for Second Quarter

Apple has reported its second quarter results. The tech giant made $45.6 billion in revenue for $10.2 billion in profit ($11.62 per diluted share) during its second quarter. By comparison, Apple had revenues of $43.6 billion and profits of $9.5 ($10.09 per diluted share) in the second quarter of 2013.

Apple CEO Tim Cook says in the announcement, "We're very proud of our quarterly results, especially our strong iPhone sales and record revenue from services. We're eagerly looking forward to introducing more new products and services that only Apple could bring to market."

9to5mac breaks down the sales figures for devices. The include 43.7 million iPhones and 16.3 million iPads. That's a nearly 17% jump in iPhone sales compared to Q2 2013 when Apple moved 37.4 million iPhones. Apple did not reveal details about how many of the phones are the cheaper iPhone 5c model. iPad sales were down compared to Q2 2013. iPad sales were 16.5% less in Q2 2014 when it sold 19.5 million iPads. Sales of Macs were about the same in both quarters.

Apple also shared the news that it has moved 20 million Apple TV units since 2007, which is impressive. Cook said the big sales number means he wills top calling the Apple TV product a "hobby." It is not clear how many of the Apple TVs sold are the latest slick black model pictured below.

Apple TV

Photo: Apple

Posted on April 24, 2014

GrubHub Shares Soar 31% on Opening Day

GrubHub App

GrubHub (GRUB) shares climbed 31% on its IPO day. The company helps people order takeout from restaurants online and over mobile devices. Food can be ordered for delivery or pickup. The company has apps for the iPhone and Android devices.

CNN/Money reports that GRUB shares were up more than 50% at one point during the day. The company had revenues of $137 million in 2013 and has 3.4 million active diners or users at 28,000 restaurants. CNN/Money notes that GrubHub is facing a patent lawsuit over its "online order-synching technology and online menus."

The WSJ's Moneybeat blog has rounded up some GrubHub IPO puns. Some of the words used in IPO news stories included delivered, devour, hunger and gobbles.

Here's a GrubHub video about how GrubHub works:

Image: GrubHub

Posted on April 4, 2014

Mars Builds New Factory in Topeka

Mars has opened a new plant in Topeka, Kansas. The Topeka-Capitol Journal reports that the 500,000-square-foot plant took two years to build. It will produce about 10 million candy items each day, including 39 million individual M&Ms. Mars is applying for LEED gold certification for the Topeka plant.

Elaine Quijano from CBS This Morning toured the new facility. The factory is focused on Peanut M&Ms and Snickers. It will make over 6 million Snickers bars per day. The plant includes a huge peanut roasting room where 25 tons of peanuts are roasted. Elaine learned that the name Snickers come from a family horse. Take a look:

Posted on April 2, 2014

Fourth Quarter 2013 GDP Revised Downward to 2.4%

The U.S. government has revised the GDP for Q4 2013 to 2.4%. This is a big decrease from the original 3.2% the government reported last month. It is also a big drop from the Q3 GDP. In the third quarter, real GDP increased 4.1 percent.

The official report from the Bureau of Economic Analysis (BEA) can be found here (PDF). The BEA says, "With this second estimate for the fourth quarter, an increase in personal consumption expenditures (PCE) was smaller than previously estimated."

The BEA attributes the deceleration in real GDP growth to reduced private inventory investment and a larger decrease in spending by the federal government.

Stocks are up following the news today. Forbes reports that analysts were expecting the downward revision.

Posted on February 28, 2014

DOW Falls 326 Points

The stock market is struggling to find solid ground this year and continues to slip. The DOW lost 326 points today (2.08%). The Nasdaq fell 2.61%. This has been a bad start to February after a January that was also not good for investors. The DOW was down over 5% in January, which CNN/Money says was the worst month since January 2009.

A weak U.S. manufacturing report is getting blamed for today's slide. People will be watching Friday's jobs report very closely for more signs on whether or not the economy is starting to slip back into a recession. Sam Stovall, chief equity strategist at S&P Capital IQ, believes we won't slip beyond the 10% zone. He thinks worldwide economic growth will continue to advance this year. Take a look:

Posted on February 3, 2014

Apple Falls 8% in After Hours Trading

Apple has reported the results from its fiscal Q1 2014 quarter, which ended December 28, 2013. The company reported quarterly revenue of $54.5 billion and profit of $13.1.

Apple also released a data summer sheet to go with its earnings release. Revenue is up 6% in Q1 2014 compared to Q1 2013. Total iPhone units sold was up 7%. iPad and Mac sales also increased during the time period. The iPod units sold tumbled by 52% - Apple sold over 6,000 them in its Q1 2014 quarter compared to 12,600 in Q1 2013.

The number of iPhones sold fell short of analysts expectations. CNBC reportsreports that Apple also provided revenue estimates for the current quarter of $42 to $44 billion, which is under analysts projections of $46.12 billion.

Apple lost 44 points in after house trading, which is about 8%.

Posted on January 28, 2014

Suntory to Acquire Beam in $16 Billion Deal

Beam logoSuntory, a a Japanese brewing and distilling company, has announced plans to acquire Beam in a $16 billion deal. The $16 billion valuation includes Suntory taking on Beam's debt. Beam's products include Jim Beam, Canadian Club whiskey, Pinncale vodka and more. The deal is expected to in the second quarter of 2014. Suntory will acquire Beam shares for $83.50 per share. The transaction consideration represents a 25% premium to Beam's closing price of $66.97 on January 10, 2014. The deal has been approved by the board of directors from both companies.

Nobutada Saji, president and chairman of Suntory's Board, said in a statement, "I am delighted that we can announce this agreement with Beam, a company with a portfolio of leading global brands, including Jim Beam and Maker's Mark, and a strong global distribution network. I believe this combination will create a spirits business with a product portfolio unmatched throughout the world and allow us to achieve further global growth. We are particularly excited about the prospect of working more closely with Beam's excellent management and employees who will play an integral part in the growth of the business."

Suntory and Beam already have some relationships. Suntory distributes Beam products in Japan and Beam distributes Suntory's products in Asia. Reuters reports that the combined entity will be the third largest whiskey company according to International Wine & Spirit Research.

Image: Beam

Posted on January 14, 2014

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