While some stocks have come under pressure during earnings season, and others have beat expectations and rallied, there is one stock that continues to rally despite getting horrible press. This is Apple, the stock that seems to levitate even when the tech news headlines are hammering this name. Next week, Apple will report on Tuesday, with the company likely reporting sales lower.
On January 2, Apple said that its critical holiday quarter revenue would be $7 billion short of its previous projection because iPhone sales had taken a beating in China. Greater China sales were down 27% versus a year earlier. Apple then had an incident in cancelling a previously announced product, held a strong invite-only event at its campus without any hardware products, and it was missing critical details on the products it did announce.
EPS: $2.36 vs. “2.73 last year
Revenue: $57.41 billion vs. $61.13 billion last year
It has had a war with Qualcomm and paid it in a one-time amount analysts believe to be in the billions. Despite all this, despite all this horrible news, and an concerns about first quarter earnings, the stock was up over 43% last week. How is this possible? Surely iPhone sales are falling and it stopped reporting unit sales – this is not a good sign according to analysts.
The stock is said to be rise as the market and investors are finally coming to terms with the company changing its base, foundation and future. Is it possible that investors see this and now understand it. This story was sourced from CNBC, Kif Leswing, 28 April.