LIVE NOW: APPLE & SANDISK EARNING REPORT 2026
In a Nutshell
Trader made $5,900 on SanDisk inverse ETF position by reducing size early and closing after an 18% push. Apple beat earnings modestly but showed minimal movement, while Reddit missed expectations and dropped 5.47%. Key warnings emphasized proper position sizing for beginners, avoiding earnings trades, and not over-leveraging at extended market highs.
These notes were generated by AI and may contain inaccuracies.
Apple and SanDisk are reporting earnings after markets close, with volatility already presenting. Apple experienced a significant drop but then pushed up to highs of 275.94, with all-time highs recorded at 288.35. All other companies reporting earnings exceeded market expectations, though Meta and Microsoft saw downturns despite meeting expectations. SanDisk is finding support around the 1,100 range at 1,098. SanDisk has been one of the best-performing stocks for 2026, with a 3,000% return in one year driven by hype rather than fundamental strength.
Apple giving back gains serves as a reminder that beginners get upset when pumps and rallies reverse. Those who bought Apple on this particular day face unfortunate timing. Long-term investors who already hold Apple positions have an advantage, provided they considered position size and exposure. Apple has both upside potential and downside risk if it fails to meet Wall Street expectations.
The Nasdaq market is holding strong and pushing to new all-time highs. The observation is made that celebrating 3-year high inflation by pushing to all-time highs seems contradictory. The dip appears to be getting bought up. Volatility remains high, and the reminder is given that trading stocks right before earnings is not ideal for beginners due to the extreme risk exposure.
Markets have officially closed with Apple, SanDisk, Reddit, and Rivian reporting earnings. The distinction is made between three approaches: holding positions through earnings, trading the immediate reaction (high risk), or waiting for gap up/gap down movements. The warning is repeated that beginners should not trade earnings reactions.
Options trading during extended hours has restrictions - trades cannot be executed in the same manner as regular hours. The question is raised about what Trump might have tweeted, with speculation about positive comments regarding Tim Cook.
SanDisk is seeing volatility within the first minute of earnings reaction, moving 1.6% down initially. The expectation is set that SanDisk, being a volatile stock, will either make a big move down or big move up rather than a modest 1% movement. SanDisk should theoretically be valued at 200, though markets are acknowledged as trading at irrational valuations.
An inverse ETF position on SanDisk was reduced by 50% early, with the remainder allowed to ride. The position was closed completely after a push higher, resulting in $5,900 profit for the day. The average price was May 32. The trader was already up $3,000 when taking initial profits. The position size was kept very small due to the high-risk nature of the trade.
Position size management is emphasized as something beginners often overlook, tending to go all in rather than sizing appropriately for risk level. A $1,000 account might trade high-risk positions with only $10 or $50. The approach focuses on looking out for beginners rather than encouraging aggressive trading. The $5,900 profit on SanDisk was not made entirely in the past few minutes - $3,100 was already accumulated, with an additional $2,000 gained during the 18% push.
Reddit reported a 5.47% move and missed EPS expectations. Reddit generates $2 billion in revenue and $529 million in net income, though the profit margin is considered low relative to the company's size. Reddit trades at 50 times earnings, having corrected 50% from highs where it traded at over 100 times earnings. The platform reaches many users but faces questions about advertiser monetization.
Markets being overextended means investors should avoid over-leveraging at these levels. Long-term positions can be maintained, but adding leverage at overbought levels is cautioned against. Roblox is cited as an example, having fallen from 138 to 44 per share. The principle is stated that leverage is dangerous when it turns against investors, potentially leading to margin calls on 10-20% moves after 50% declines.
ServiceNow reported earnings with a huge gap down due to losing market share to AI competitors. Palantir trades at 200 times earnings, considered too expensive during uncertain times. The analogy is presented that buying premium stocks during potential recession signals is like buying a Bugatti when economic conditions are deteriorating - difficult to resell if needed. Palantir could potentially reach sub-$100 per share if markets correct.
The principle is stated that all companies eventually correct and that fundamentals matter eventually. Markets can remain irrational longer than investors can remain solvent. Intel is running up without filling gaps despite being considered a poor company historically. The Trump administration's involvement with Intel is noted, with the question raised whether they can execute on promises.
Nvidia shares are down more than 4% after hours due to competition concerns in AI chip manufacturing. Nvidia generates $120 billion annually in net income and $215 billion in revenue. The P/E ratio is considered decent though slightly elevated. Competition from Micron and AMD is acknowledged, with the view that Nvidia remains the strongest player. The current pullback is viewed as a necessary breather for the market.
Apple's gross margin is 48.2%, with Mac revenue declining 7% and wearables also slipping. iPhone sales surged, which was surprising. Services are growing 14% year-over-year. The shift to services hasn't fully offset margin erosion from hardware. Potential anti-trust penalties are mentioned as a concern. Supply chain issues and tariff impacts are discussed as factors.
Apple's initial reaction shows less than 1% movement as markets digest the results. The earnings represent a nice beat but not huge, with 4.2 and 2.1 figures mentioned. The guidance appears to be the key factor. Apple's typical movement patterns are discussed - usually 1%, 0.25%, or 3% rather than meme-stock style volatility. Apple is viewed as a solid company suitable for investing on dips rather than trading.
The speaker personally would not buy Apple at current elevated levels. However, when Apple experiences significant sell-offs due to external catalysts such as Trump's tariff war or geopolitical conflicts like tensions with Iran, it becomes a preferred investment. Apple serves as a consistent "go-to" holding for the speaker's personal investment account, daughter's account, son's account, and Rachel's account.
Apple announced a $100 billion stock repurchase program. China revenue is showing strong growth. Apple is positioned as a long-term investment rather than a short-term trade, with the speaker noting that meme stock traders may find the modest 0.5% movement uninteresting.
Reddit showed a 7.5% move. Roblox recovered from a 20% decline to close down only 16%. ServiceNow moved higher. Rivian reported earnings but the speaker chose to avoid the stock.
Elon Musk is partnering with Intel to utilize their advanced 14 chip technology for his $20 billion-plus Terafab project. The speaker expressed skepticism about Intel's ability to execute on these strategic partnerships, noting that Intel lacks the leadership style of Elon Musk. Tesla can maintain premium valuations due to Musk's delivery track record, despite being notorious for over-promising, while Intel does not have this advantage.
Extended hours trading operates approximately 4 hours before and 4 hours after regular market hours, with some platforms offering overnight trading. Market orders cannot be used during extended hours - only limit orders are permitted. Traders must adjust their trading hours settings to include extended hours when executing trades. Not all stocks are available for overnight trading, though some like SanDisk support this feature.
The speaker believes that increased accessibility of investing has amplified market volatility. While not a fan of 24/5 trading, the speaker acknowledges that reducing the Pattern Day Trader (PDT) rule threshold to $2,000 has created concerns. Prediction market companies promoted by the President have contributed to viewing markets as a "casino," which may not be healthy for beginners. Retail traders can move individual stocks during short squeezes like GameStop, but are unlikely to significantly impact trillion-dollar market cap companies like those in the Nasdaq or S&P 500. Institutions are primarily responsible for large market movements.
The speaker closed positions with a $5,900 profit for the day and retained one remaining share. Apple closed slightly in the red, consistent with its historical pattern of not reacting dramatically to initial earnings releases. The speaker noted that earnings calls often contain information not factored into initial market reactions, creating potential for significant moves in either direction.
The speaker hosts daily live trading sessions with the LPP team every morning. A special 50% off lifetime access offer is available through a link in the live chat, not the description. Members who joined in 2018 continue to have access to all updates and live trading sessions. The only service offered is LPP with one-time payment and lifetime access. The speaker warned viewers about fake accounts across all platforms and confirmed they are verified everywhere, never messaging first, and do not trade for others or operate crypto WhatsApp groups.
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