Apple (almost) joins the $100B club

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Hello and happy Sunday! Today’s Brunch brings you a roundup of record-breaking profits, strategic shifts, and surprising comebacks. Here’s what we’re covering:

• Apple’s milestone: Adjusted profits break $100 billion, despite a major tax charge.

• Amazon’s record quarter: Streamlined operations and high-margin businesses fuel big gains.

• DoorDash’s turnaround: The company posts profits, expands services, and adapts to new regulations.

• Starbucks’ China challenge: A new CEO tackles slowing sales amid fierce competition.

• The MBA resurgence: Applications surge as students flock back to business school.

Apple Actually Reached The Milestone

After nearly three years of flirting with the $100 billion annual profit mark, Apple has finally (sort of) crossed the threshold. Officially, the tech giant reported a $93.7 billion net profit for the fiscal year ending September 28. But thanks to a one-time $10.2 billion income tax charge related to a decade-long legal case with the EU, Apple’s adjusted non-GAAP profit hit nearly $104 billion. 💰📱

Apple’s journey to this milestone has been incredible, with profits growing more than 50x since 2006, the year before the iPhone debuted. With adjusted profits now rivaling Saudi Aramco, the world’s most profitable company, Apple’s aiming high for what’s next.

Amazon’s Profit Hit A New High

Amazon’s third-quarter results are record-breaking: $15.3 billion in profit — the company’s highest quarterly earnings yet. 💪 Under CEO Andy Jassy, Amazon has been tightening its belt, cutting costs, and streamlining operations. Since late 2022, the company has reduced its workforce by 27,000 and optimized its logistics network to speed up deliveries and save on shipping costs, all of which helped Amazon achieve double-digit operating margins for the first time this year.

Adding to the boost, Amazon’s high-margin businesses — AWS, digital subscriptions, and advertising — are outpacing traditional retail growth, fueling a more profitable future.

DoorDash Has Nailed It

DoorDash just reported a quarterly profit of $162 million, marking a significant turnaround as it exceeded expectations across the board. The company saw a boost in orders, up 18% from last year to 643 million, and found new ways to make money through ads, increased subscriptions, and partnerships.

DoorDash has been working to get a bigger cut of sales on its platform — its revenue as a share of Gross Order Value has jumped from 8.5% in 2019 to 13.5% today, thanks to things like ads and efficiency improvements. The company also reacted to new minimum-wage laws by increasing delivery fees in some areas, which, for New Yorkers, means a whopping 58% hike. On the expansion front, DoorDash teamed up with Lyft for ride discounts and is testing deliveries from grocery stores, pet stores, and even with drones. 🍱 🚁

New CEO Has Work To Do In China

Starbucks is hitting a rough patch, reporting a 25% drop in profits as US and China sales took a tumble. ☕️📉 Americans are visiting Starbucks less often, with transactions down 10%, although they’re spending slightly more per visit. The picture in China, though, is even bleaker — transaction volumes and average spend are both down, facing fierce competition from fast-growing rival Luckin Coffee.

Despite doubling its store count in China since 2019, Starbucks hasn’t seen sales growth keep up, and with 20,000 Luckin locations — many offering cheaper drinks and fast mobile ordering — Starbucks is running to stand still. The brand’s loyalty program is still a big win globally, but new CEO Brian Niccol is looking to step away from heavy promo reliance, even as he rolls out loyalty perks in China to keep customers interested. With competition rising and economic conditions challenging, Niccol’s got a tall order to keep Starbucks steaming ahead.

The New MBA Boom

Despite the idea that MBAs were past their prime, applications for business master's programs have skyrocketed this year, with MBA applications up 13% from 2023 after a two-year dip. Many are seeing B-school as a strategic move in a competitive job market, especially at top institutions like Harvard and Columbia, which saw double-digit application boosts. The Graduate Management Admission Council (GMAC) confirms that US programs led the charge, with American applicants up nearly 19%. It seems the classic MBA, like the S-curve many students study in their first-year classes, is experiencing a new growth phase. 👨‍🎓 📊