Apple is on track to having its best month in over two years despite declining consumer demand, a strengthening dollar and Chinese lockdowns.
Despite these issues, the tech giant’s stock price has risen recently and it’s on track to have its best month in over two years – a 15% increase in July.
Additionally, the increases in the S&P 500 and Nasdaq 100 indices are dwarfed by those of the shares, which have outperformed those of Microsoft, Alphabet, and Amazon.com this month. Investors are favouring a familiar brand when the US economy is on the verge of recession.
“Apple is outperforming because it’s a place of safety for investors,” said Gene Munster, who reported on Apple and Google as an analyst during his 21-year career at Piper Jaffray. “Every company will be impacted by the upcoming slowdown. Apple should fare better.”
The rally indicates that investors have high hopes for the earnings release. Surprisingly encouraging numbers from Google parent Alphabet and Microsoft have also increased the stakes for Apple.
Undoubtedly, Apple’s sales growth has slowed for five consecutive quarters. The company warned in April that supply problems brought on by Chinese lockdowns would reduce revenue by US$4 billion to $8 billion in the third quarter that ended on June 30. As a result, analysts predicted the smallest revenue increase since 2020 according to techcentral.co.za.
📈The stock of the day by torto📉
Apple 🍎 $AAPL reporting earnings today after market close:
> 1 month: 14%🟢
> 6 month: -8%🔴
> 3 year: 199.1%🟢
> Avg. yearly return (since 1980): 32.6%🟢
> Market cap: $2.5TB💰
> Enterprise Value (EV): $2.5TB💰
> P/E: 25.1📊
> P/S: 6.4💵
— torto.ai (@torto_ai) July 28, 2022
Apple (AAPL) exceeded analysts’ estimates with record sales of $83 billion when it published its Q3 earnings on Thursday.
According to Bloomberg, these are the report’s key figures and how they stack up against Wall Street’s predictions.
- Revenue: $83 billion versus $82.7 billion expected
- Earnings per share: $1.20 versus $1.16 expected
- iPhone revenue: $40.7 billion versus $38.9 billion expected
- iPad revenue: $7.22 billion billion versus $6.9 billion expected
- Mac revenue: $7.4 billion billion versus $8.4 billion expected
- Wearables revenue: $8.1 billion versus $8.8 billion expected
- Services revenue: $19.6 billion billion versus $19.7 billion expected