Apple's Bitter Earnings
Apple, SBF, Block,
Good Morning!
Happy Friday! We made it.
👉 Apple’s disappointing quarter 🍎
👉 SBF convicted in hours ⚖️
👉 Block beats estimates 🧱
Cheers to the weekend ahead!
APPLE: Bitter Earnings
Apple beat earnings on Thursday, but its future guidance did not sit well with investors. After the close of Thursday's trading, Apple's shares experienced a decline in after-hours trading. This occurred as the tech behemoth disclosed a downward trend in iPhone sales for the fourth quarter. The company observed a marginal revenue dip of less than 1% for the quarter and noted a 3% fall in full-year revenue compared to fiscal 2022. Additionally, Apple has indicated prospects of a subdued performance in the forthcoming holiday quarter.
Despite these trends, Apple has managed to outperform on various key metrics, including a significant year-over-year increase of 16% in services revenue, which exceeded the expectations set by Wall Street analysts. The iPhone represents about 50% of Apple's total sales, making the release of a new version a significant event for shareholders. The iPhone 15 saw a major redesign in its premium models, which now boast titanium enclosures, along with enhancements including a zoom camera lens with greater capabilities.

Source: Hardwarezone
The goal is to appeal to consumers who are increasingly keeping their existing phones for extended periods. Apple benefited from a favorable comparison to the previous year during this launch cycle, as the iPhone 14 Pro versions encountered supply issues owing to closures at Apple's production affiliates in China. Conversely, the iPhone 15 Pro was not subject to these constraints. Apple’s stock has been one of the highlights of 2023, as it is currently up 36% on the year with a market cap of over $2 trillion.
Earnings:
Revenue: $89.5B vs. $89.0B
Earnings Per Share: $1.46 vs. $1.39
🎯 GRIT TAKE:
Apple’s quarter had us with…upgrade to VIP to read the full GRIT take. Click below!
SBF: Guilty on All Counts
Sam Bankman-Fried, previously celebrated as a cryptocurrency wunderkind, was convicted on all charges of fraud on Thursday, following the collapse of his cryptocurrency exchange, FTX, a year earlier. This event erased the investments of thousands of its users.
The guilty verdict was handed down at approximately 7:40 p.m. Eastern Time after the federal jury in Manhattan concluded their discussions, which lasted around four hours.
As a founding member of FTX, Bankman-Fried faced multiple counts, specifically seven, including wire fraud, securities fraud, and laundering money. These charges stemmed from actions that defrauded customers of FTX and creditors of its sister hedge fund, Alameda Research.

Source: Vox
Both firms quickly collapsed in November 2022 after some of their financial liabilities were exposed. The fact that Alameda had taken billions of dollars from FTX's customers and that much of Alameda's balance sheet comprised digital currency assets it had created was central to the case against Bankman-Fried. Unnerved by disclosures about the firm's financial position, many of FTX’s customers tried to get their money back. That set off the equivalent of a bank run.
BLOCK: From Square Roots to New Heights
Block, formerly known as Square, had a great earnings report on Thursday. Their earnings beat analyst estimates in revenue and earnings per share. They showed strong growth in Cash App and Square revenue. Net revenue for the third quarter increased by 24%, reaching $5.62 billion, up from $4.52 billion in the same quarter of the previous year. Revenue from bitcoin soared to $2.42 billion, a rise from the earlier figure of $1.76 billion. Additionally, gross profit saw a 21% increase, ascending to $1.9 billion from the former $1.57 billion. Previously, the company had forecasted its full-year adjusted EBITDA to be around $1.5 billion. Still, it has revised its expectations, predicting the adjusted EBITDA will land between $1.66 billion and $1.68 billion.
Source: Seattle Times
Block anticipates its adjusted operating income for the entire year to be between $205 million and $225 million, considerably higher than the earlier estimate of $25 million. The projected full-year revenue was anticipated to be $21.54 billion. While the company did not specify its expected full-year revenue, it did forecast an adjusted operating income of $875 million for 2024.
Earnings:
Revenue: $5.62 billion vs. $5.44 billion expected
Earnings Per Share: $0.55 vs. $0.47 expected
Headlines You Need To Know: 🎙
US payrolls increased by 150,000 in October
DraftKings revenue jumps 57%
Paramount stock rises after solid earnings
UAW president is ready to take on Tesla, Elon Musk
Dall-E is so good that it is stroking an artist revolt
In the long run, investing is all about the economy
Starbucks unveils plans for 17,000 new locations
US vs. China in a more divided world economy
Amazon to close physical retail stores
This asset was bought for $19K… and sold for $110M – now you can access the market
Sponsored By: Masterworks
When a New York City real estate developer purchased an untitled painting from Jean-Michel Basquiat for $19,000 in 1983, he definitely wasn’t expecting a 5,798x return on his investment. But that's exactly what happened when he sold the work for a stunning $110,000,000 in 2017.
Now, everyday investors are unlocking access to the very same market thanks to the blue-chip art investing platform Masterworks.
Masterworks’ nearly $1 billion collection includes works by greats like Basquiat, Banksy, and Picasso. When Masterworks sells a painting – like the 16 it's already sold – investors reap their portion of the profits.
Offerings can sell out in minutes, but GRIT readers can skip the waitlist to join with this exclusive link.
*This is PAID advertising content and the disclaimer at the bottom of this email MUST be read carefully.

The Credit Card Maverick
This man bought a $65 million skyscraper… on a CREDIT CARD. In 1975, Jonatan Werner used a $10,000 loan to launch a highly successful real estate business. The business is around today a well-known real estate company in North America. Werner was on the verge of buying the Royal Trust building for $65 million; he had the investment money ready but had a wild idea. He would make this multi-million dollar real estate on a credit card. Werner tells his assistant to call Royal Trust Bank and ask for authorization for this multi-million dollar purchase.

Source: Images Montreal
The bank agreed because they didn’t want to upset one of their most important clients. The wild part? Werner received a 2% cash-back discount on this transaction, so he bought the building for a $1.3 million discount.
Chart of the Day
US Commercial Real Estate
US commercial real estate prices have kept sliding

Source: Bloomberg
Real, Hard, “Liquid” Assets
Sponsored By: Vinovest
For hundreds of years, the ultra-wealthy have invested in fine wine and whiskey. Unless you had serious cash and connections, a seat at the exclusive table was off-limits.
Until now: Vinovest is democratizing these assets so anyone can diversify beyond the stock market!
Vinovest’s easy-to-use platform cuts out the middlemen and connects you with a portfolio manager who works with distilling partners to find the right assets for your unique goals and horizons.
Why whiskey?
With a 478% growth in value from 2011 to 2021, Fine Whiskey was ranked the world’s best-performing luxury asset by Knight Frank!
Want to learn more about how the industry works and how this non-correlated, shorter duration alternative investment fits with your financial goals?
*This is PAID advertising content and the disclaimer at the bottom of this email MUST be read carefully.

GRIT Meme of the Day 😂
Tag GRIT Capital on social media for a chance to be featured in our meme or Tweet of the day in our GRIT daily newsletter! 👇

Source: @gavinuf7
Have feedback to share? Click HERE. Good or bad, we are always eager to improve our newsletter.


The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
This newsletter contains content sponsored by Vinovest,inc. (“Vinovest“). (“Grit”). has been paid by Vinovest,inc. (“Vinovest“) to conduct an advertising campaign on this newsletter and other websites and social media platforms owned and operated by Grit. Grit has been paid in cash for this advertising campaign. Be aware that the payment received by Grit may put Grit in a conflict of interest with the investor/reader.
This newsletter contains content sponsored by Masterworks, LLC. Grit Capital Corporation (“Grit”). has been paid by Masterworks, LLC to conduct an advertising campaign on this newsletter owned and operated by Grit. Grit will be paid in cash for this advertising campaign. Be aware that the payment received by Grit may put Grit in a conflict of interest with the investor/reader. Investing involves risk and past performance is not indicative of future returns. See important Reg A disclosures and aggregate advisory performance masterworks.com/cd
Grit is a publisher of financial information, not an investment advisor. Grit does not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. Grit does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author or paid advertiser.
THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. INVESTORS SHOULD OBTAIN INDIVIDUAL INVESTMENT ADVICE BASED ON THEIR OWN CIRCUMSTANCES BEFORE MAKING AN INVESTMENT DECISION
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and Grit undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
Grit does not accept any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
By using the Site or any related social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.
Grit publishes content through Beehiiv, an email newsletter platform and operates the websites Gritcap.io and Get-versed.io and social media accounts (including but not limited to): Instagram, Twitter, Linkedin, TikTok, YouTube, SnapChat, Facebook and Threads. By accessing Grit’s content, you agree to be bound by the Terms of Use and Privacy Policy, in effect at the time you access this website or any page thereof or any of Grit’s content. The Terms of Use and Privacy Policy may be amended from time to time. Nothing on this website or Grit constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction where such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such offer or solicitation. Grit is not an underwriter, broker-dealer, Title III crowdfunding portal or a valuation service and does not engage in any activities requiring any such registration. Grit does not provide advice on investments or structure transactions. Offerings made under Regulation A under the U.S. Securities Act of 1933, as amended (the "Securities Act") are available to U.S. investors ONLY who are “accredited investors” as defined by Rule 501 of Regulation D under the Securities Act well as non-accredited investors, who are subject to certain investment limitations as set forth in Regulation A under the Securities Act. In order to invest in Regulation A offerings, investors may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify that you are qualified to invest in offerings posted on this website. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Grit does not verify the adequacy, accuracy or completeness of any information. Neither Grit nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, valuations of securities or completeness of any information on this site or the use of information on this site. Neither Grit nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising from any error or incompleteness of fact, or lack of care in the preparation of, any of the materials posted on this website. Investing in securities, especially those issued by start-up companies, involves substantial risk. investors should be able to bear the loss of their entire investment and should make their own determination of whether or not to make any investment based on their own independent evaluation and analysis.
Please read: Terms of Use, Privacy Policy, Disclosure Policy, State Disclosure Policy, and Disclaimer Policy
If you have any questions please contact us at [email protected]