How 'bout dem Apples

MARKETS

• Currencies: With Asian and European markets quiet for public holidays, the U.S. dollar surged into positive territory for the year.
• Earnings recap: Snap (-17% after hours), crackled and flopped after the company came up short of revenue estimates. Under Armour (+1.52%) rallied past sales estimates, but investors were concerned about its inventory management.
• Earnings today: Mastercard, CVS, Kraft Heinz, Tesla, ADP.

TECH

Apple Earnings: By the Numbers

If the entire earnings season is a steakhouse menu, Apple's (+3.6% after hours) report is the $850 billion filet mignon. And in case you didn't catch the Yelp review, it beat expectations on both the top and bottom lines and issued strong guidance.

But before we dig in, let's set the stage:

• Apple stock dropped 9% since March 12, with analysts chopping iPhone sales estimates.
• They could've taken their cues from Apple suppliers, which hinted at slowing demand for the iPhone.
• After the tax overhaul, Apple announced it'll bring home most of the $269 billion it stored overseas. Shareholders wanted to know how much of it they'll be seeing.

Now keep that in mind when taking a look at the numbers...

52.2 million

• The number of iPhones sold, which was in line with expectations. When you consider all the hysteria over the X's $999 price tag, you can bet Tim Cook is breathing a sigh of relief.
• Still, with global smartphone demand past its peak, Apple will look for growth in other areas. Like its services business.

$9.19 billion

• Revenue from its services business (which includes Apple Music, Apple Pay, App Store). Up 31%, this unit has become Apple's clear second-in-command to the iPhone. The plan is to hit $50 billion in annual revenue by 2021.

$100 billion

• The generous share buyback program (couple that with a 16% dividend boost). Apple investors were seen flipping autonomous cars and clinking beers with their HomePods.

$13.02 billion

• Revenue in Greater China. That's up 21% from a year ago. Good news, since Apple has been struggling to keep up in this critical market. It's been increasingly crowded out by domestic players like Vivo, Oppo, Xiaomi, and Huawei.

Bottom line: Once again, Apple impresses despite plenty of warning signs. You can write the iPhone's obituary another day.

TECH

Facebook Breaks Match’s Heart at the F8 Conference

Did someone crank up the heat at Facebook's (+1.08%) F8 developer conference? Mark Zuckerberg. Was. Hot.

...on Match Group's tail. After regurgitating Facebook's pledge to better protect user privacy, Zuck said dating is coming to Facebook.

Match investors looked heartbroken, sending shares falling 21%.

Zuck had a number of other announcements worth swiping about:

• Instagram: Third-party AR filters for Stories, which directly challenge Snap's World Lenses.
• WhatsApp: Group video chatting is in and WhatsApp for Business is going strong. The feature lets customers message back and forth with business owners (texting is the new calling, folks).
• Messenger: It's getting a much simpler redesign.

The Oohs and Ahhs: Zuck showed off Facebook's new VR tech—it's no Ready Player One, but it looks pretty good. Then, he showed off the new Oculus Go headset, said it's shipping today (for $200), and pulled off his best Oprah impression, giving everyone in the audience a set.

+ Awkward moment: Mark showed himself using the AR bunny rabbit filter and mimicked his kid, "Oh look Mama, Dada's a bunny." *Huge laugh from Zuck, silence from crowd.*

+ The CEO of Match's parent company said bring it on: “Come on in. The water’s warm...Their product could be great for US/Russia relationships.”

MUSIC

Gibson Is Singing the 11-Bar Blues

Whenever you hire a "Chief Restructuring Officer," you know things aren't going well. But Gibson Brands hired Brian Fox to fill that role, as the 124-year-old guitar maker filed for Chapter 11 bankruptcy.

The current situation: Gibson is up to $500 million in debt, but will be handed a lifeline via "debtor in possession" financing of $135 million (from noteholders who will get equity in the company).

So where did Gibson go out of tune?

• Bad bets: Its 2014 dive into consumer electronics was a flop. According to Fox, the unit became "trapped in a vicious cycle in which it lacked the liquidity to buy inventory and drive sales."
• Industry-wide decline: Annual electric guitar sales fell from 1.5 million to 1 million over the past decade.

But don't leave it for dead. The company that made your dad's solid body Les Paul (don't you dare touch) sells over 170,000 guitars across 80 countries each year. And for electric guitars over $2,000, it's got market share of over 40%.

ENTERTAINMENT

Hasbro Seeks Help From Power Rangers

"Go Go Hasbro" doesn't quite have the same ring to it as "Go Go Power Rangers!" But, we'll have to get used to it after Hasbro (-0.79%) acquired the brand for $520 million.

"Shift into turbo!": Drawing on Power Rangers' 25 years of crime-fighting experience, Hasbro's hoping they'll be the heroes that save the day. Last quarter the toy maker posted a loss of $112 million.

So what will Power Rangers bring to the table?
Last year, Power Rangers toys brought in $200 million, and the Hollywood adaptation grossed $142 million at the global box office.

But Hasbro has to be careful: Movie attendance hit a 25-year low in 2017, Toys ‘R' Us, which accounted for 9% of its sales, is liquidating, and kids are increasingly hopping from physical toys to digital tech.

Now, it's got a decision to make: Should it a) build up digital gaming, b) take a page out of Disney's book and start a movie franchise, or c) go all-in on toys?

WHAT ELSE IS BREWING

• California and sixteen other states are suing the EPA over its plan to roll back vehicle emissions standards.
• Boeing (-1.22%) agreed to buy aircraft parts seller KLX for $3.25 billion.
• FedEx (-1.01%) is testing out its first-ever hydrogen-powered delivery truck.
• Commerce Secretary Wilbur Ross said the administration plans to make a decision soon about potential tariff exemptions.
• Goldman Sachs (-0.70%) will pay $110 million in a settlement with regulators over improper trading practices in its forex unit.

THE BREAKROOM

VENTURE THIS RESPONSES
Yesterday, we asked whether you'd invest in co-working behemoth WeWork. And it was a tight race: 53% were bullish and 47% weren't on board. Here's what you had to say:

"As the community grows, so do monetization opportunities to connect brands, products and services to their community members."

"Shared space is the infrastructure of the future—it will empower new business models. Profit will follow."

"Good product but not great enough to create long term member stickiness, profitability is highly sensitive to small changes in rates or occupancy, will look a lot like Regus in the future."

SIP ON THIS
Looks like the digital token-as-publicity stunt has found its way into pork. Oscar Meyer has released a limited number of "Bacoins," digital tokens you can redeem for bacon. As of 2 pm yesterday, one Bacoin traded for 12 slices of bacon. When reached by telephone, Miss Piggy called Bacoin ‘a fraud' and said it would ‘never become a legitimate store of value.'

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Breakroom Answers