Three mega tech earnings on deck: AAPL, AMZN, and GOOGL

CAPITAL PARTNERS STEVE, WHAT ARE YOU WATCHING >> IT’S ALL ABOUT HOW BAD WAS THAT QUARTER — LAST QUARTER BECAUSE OF THOSE PRODUCTION CUTS WE KNOW HAPPENED IN CHINA? NOT ENOUGH PEOPLE WERE ABLE TO GET THEIR iPHONES IN TIME FOR THAT HOLIDAY QUARTER WHERE THEY TYPICALLY SELL THE MOST iPHONES. AND ALSO ON TOP OF THAT, WE’RE SEEING ANALYST ESTIMATES OF HOW SHORT THEY CAME UP WE HAVE ABOUT 10 MILLION FEWER THAN EXPECTED AT THE HIGH END, 3 MILLION ON THE LOW END ON TOP OF THAT, DOES THE DEMAND CARRY FORWARD? WE KNOW FROM APPLE ITSELF, THEY

SAW DEMAND MAINTAIN THROUGHOUT THAT QUARTER, THEY JUST COULDN’T MEET IT BECAUSE OF PRODUCTION PROBLEMS SO DOES THAT DEMAND CARRY OVER INTO THIS MARCH QUARTER? NOW THAT THEY HAVE CAUGHT UP, CAN THEY MAKE THE DEMAND ON TOP OF THAT, WE ARE LOOKING AT THINGS LIKE MAC SALES WE ARE BEING TOLD BY APPLE THAT MAC SALES WILL LOOK PRETTY BAD, SO THEY’RE NOT IMMUNE TO THAT, EITHER SO THE QUESTION IS, IS THE iPHONE IMMUNE TO IT? AND HEAD WINDS IN SERVICES, FROM THE STRONG DOLLAR. ALSO WITH THE DROP IN MOBILE GAMING WE HAVE MORE DATA THERE THAT

MOBILE GAMING IS REALLY FALLING OFF. AND JUST ADVERTISING, AS WELL. >> AND THE PE IS BACK UP TO ABOUT 25 TIMES SO KIM, I TURN TO YOU. WHAT

SHOULD PEOPLE DO WITH APPLE HERE >> SURE. YOU ALWAYS HAVE TO REMEMBER WHEN YOU’RE TALKING TO ME, I’M LOOKING OUT THREE TO FIVE YEARS. SO WHAT I’M HEARING FROM THE ANALYSTS IS THEY’RE PLAYING THE GAME, HOW LOW CAN WE GO? BECAUSE THIS HAS BEEN A CATASTROPHIC SORT OF QUARTER I’LL TAKE THE OPPOSITE ON THAT TRADE. WHAT IF — WHAT IF SOMETHING — WHAT IF THEY EXCEED THEIR LOW

EARNINGS AND I THINK THAT’S A LIKELIHOOD HERE WITH APPLE BEING A GROWNUP IN THE WORLD OF MANAGING THE ANALYSTS SO I THINK THAT THEY WILL BE ABLE TO REPORT A GOOD REPORT, NOT A GREAT REPORT LOOKING FORWARD, DO YOU WANT TO OWN ANAL DO YOU THINK THAT THEY DO YOU THINK THEY’RE GOING TO CREATE NEW PRODUCTS WE NEVER WANTED OR NEEDED YES, THAT IS WHAT THEIR MAGIC SAUCE IS, AND I WOULD SAY IF THERE IS A DIP IN APPLE, TAKE A BITE >> I ONLY WONDER HOW MUCH OF THIS IS PRICED IN. 25 TIMES FOR

APPLE, WHEN THIS MULTIPLE — I THINK IT WAS WELL BELOW 20 JUST A COUPLE OF MONTHS AGO, AND THERE IS THIS ARGUMENT OVER WHAT A NORMALIZED PE SHOULD BE IN OTHER WORDS, IF YOU SAY THAT THE BAR IS LOW, I WONDER IF THE BAR IS HIGH. >> IT DEPENDS ON YOUR TIMELINE AGAIN, I’M LOOKING OUT THREE TO FIVE YEARS IN THE FUTURE SO I’M LOOKING AT WHAT THEY COULD LEARN. IF THEY GROW EVEN A LITTLE BIT, IN THEIR MAC SALES AND THAT AREA, BUT ALSO I’M GOING TO GIVE THEM CREDIT FOR CREATING A NEW DEVICE

AND I DON’T KNOW WHAT THAT IS. BUT I’M SURE APPLE IS WORKING ON IT, AND THAT’S THE SORT OF THING YOU’RE BUYING WHEN YOU ARE BUYING THIS IS INNOVATION AND FUTURE SALES >> SURE. >> THIS IS VERY MUCH A GROWTH NAME WHERE YOU’RE LOOKING TO THE FUTURE >> STEVE, ALSO THIS GOES TO THE QUESTION YOU HAVE LONG DISCUSSED, WHICH IS PEOPLE WILL PAY OUT LESS FOR A HARDWARE COMPANY OVER TIME THAN FOR A COMPANY WITH SOFTWARE AS A SERVICE THAT SEES THOSE PRICES CONSTANTLY RISING AND SMOOTHNESS THROUGHOUT THE CYCLES. >> YEAH, THAT’S RIGHT. BUT YOU

WANT TO TALK ABOUT SOFTWARE, LET’S TALK ABOUT SERVICE. THAT IS SOMETHING I EXPECT THEM TO BRAG ABOUT, IS HOW MANY SUBSCRIPTIONS THEY HAVE THROUGH THE APP STORE. KEEP IN MIND, THAT’S RECURRING REVENUE. THE APP STORE HAS BEEN WEAK ON THE GAMING SIDE. WHEN IT COMES TO SUBSCRIPTIONS, THEY LOVE TO SAY HOW MANY SUBSCRIPTIONS THEY HAVE BEEN ABLE TO CAPTURE, EVEN IF IT’S NOT THEIR OWN APP. THAT SHOWS THE POWER AND PROFIT CENTER OF THE APP STORE RIGHT THERE. AND THEN AS FAR AS THE HARDWARE FRONT, IS THAT DEMAND GOING TO CARRY THROUGH? IT’S NOT GOING

TO BE SO HOT ON THE MAC SIDE SO IF THAT CAN KEEP UP, THING ALSO LOOK PRETTY GOOD. >> WE’LL LEAVE IT THERE. THANKS NOR CHECKING IN WITH US, STEVE. >>> MOVING ON TO AMAZON, SHARES DOWN 50% LAST YEAR FOR ITS WORST YEAR SINCE 2000. AMAZON WARNED LAST TIME IT REPORTED THE FOURTH QUARTER REVENUE WOULD COME I

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