Apple reports record-breaking revenues in Q1 2025, but weak iPhone sales; ETFs like VGT, FTEC impacted.

From Zacks Investment Research: 2025-01-31 11:28:22

Apple Inc. (AAPL) reported strong first-quarter fiscal 2025 results, with record-breaking total revenues, earnings per share, and services revenues. However, iPhone sales were weak. Apple shares rose 3% after hours, impacting tech-heavy ETFs like VGT, FTEC, IYW, TOPT, and XLK. Earnings per share exceeded estimates at $2.40, with revenues hitting a record $124.3 billion, driven by services division growth. Wearables, Home, and Accessories revenue declined, while Mac and iPad sales rose. iPhone sales dipped, but Apple plans to release new products soon. For the second quarter, Apple expects low to mid-single digit sales growth.

VGT, FTEC, IYW, TOPT, and XLK are top ETFs to consider. VGT has $84 billion AUM with Apple accounting for 17% share. FTEC has $13.1 billion AUM with Apple at 17.1%. IYW tracks 140 U.S. technology stocks, with Apple making up 15.6%. TOPT focuses on mega-cap stocks with AAPL as the top holding at 15%. XLK is the most popular, with $74 billion AUM and Apple as the top holding at 14.7%.



Read more at Zacks Investment Research: ETFs to Ride on Apple’s Best-Ever Revenues – January 31, 2025