Should you buy Apple shares after strong Q2 results?

Apple, Inc. (NASDAQ: AAPL) reported strong second-quarter results last week, and the board of directors declared a $0.23/quarterly share dividend, which represents a 4.5% increase from the prior dividend of $0.22.

Berkshire Hathaway increased its ownership in Apple

Apple reported strong second-quarter results last week; total revenue has increased by 8.6% Y/Y to $97.3 billion, while the GAAP earnings per share were $1.52 ( beats by $0.09).

Second-quarter results beat expectations, led by strength in the sale of iPhone and all-time high service revenue. Service revenue reached $19.82 billion, while product revenue was $77.46 billion.

Revenue attributed to the iPhone came in at $50.57 billion, up from $47.9 billion in the second fiscal quarter of 2021, due to strong demand for the iPhone 13 lineup.

It is also important to mention that Mac revenue was $10.44 billion, iPad revenue was $7.64 billion, while wearable revenue, which includes the Apple Watch and AirPods, came in at $8.8 billion.

The board of directors declared a $0.23/quarterly share dividend, which represents a 4.5% increase from the prior dividend of $0.22. The quarterly dividend will be payable on May 12 to stockholders of record as of May 09, 2022.

During the second fiscal quarter, Apple repurchased $22.9 billion of its common stock, and the board of directors authorized an increase of $90 billion to the existing share repurchase program last week.

Apple has been aggressively buying its own shares in the last several years, and the company has spent a total of more than $46o billion in the past ten years on share repurchases.

This week, Morgan Stanley reported that second-quarter results prove that Apple should be able to achieve sustained gross margins of 42%+. Morgan Stanley analyst Katy Huberty said:

Morgan Stanley sees shares of Apple as a buy opportunity, and it is important to mention that Warren Buffett's Berkshire Hathaway increased its ownership in Apple during the first quarter of the 2022 year.

Berkshire Hathaway has bought $600 million worth of Apple shares in the first quarter of the 2022 year, and the company currently owns about $159 billion worth of Apple shares.

Technical analysis

The current support level stands at $150, while $170 represents the first resistance level. If the price falls below $150, it would be a "sell" signal, and we have the open way to $140 or even below.

On the other side, if the price jumps above $170, the next target could be at $180.

Summary

Apple reported strong second-quarter results last week, and the board of directors increased the quarterly dividend by 4.5%. Morgan Stanley sees shares of Apple as a buy opportunity, and it is important to mention that Warren Buffett's Berkshire Hathaway increased its ownership in Apple during the first quarter of the 2022 year.