Apparently, no one told Apple (AAPL) that we’re in a recession. The iPhone makes saw its quarterly earnings rise 15%. Sales increased 12% to $8.3 billion. On a per-share basis, Apple earned $1.35 which was increase over the $1.19 from last year’s second quarter. On Portfolio Grader, I recently raised Apple from a Hold to a Buy.
Through yesterday, shares of Apple are up 85%, and they’re up again today.
Another tech stock, Yahoo (YHOO), was able to make a profit but in a very different way. By using aggressive cost cutting, Yahoo increased its second-quarter income by 8% to $141 million. They must have cut back on every expense. Consider that revenue fell to $1.6 billion from $1.8 billion.
I have Yahoo rated as a Sell. For them to be upgraded to a Buy, the company will have to work to expand its business.