Are You Placing Bets On Apple Inc.? Keep A Close Check On December Numbers

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The technology stocks have witnessed a hit in the month of October 2018 which impacted the broader markets. The results of the companies were unable to cheer up the Wall Street players which have severely impacted the stock prices. Apple Inc. (NASDAQ: AAPL), the big name in the technology sector, has seen a negative momentum in its stock price in the after-trading hours. The fall in the share price was witnessed primarily because the company has informed the Wall Street players that its sales figure would not be meeting the expectations of the Wall Street analysts because of the weaker emerging markets as well as foreign exchange costs. The weaker expectations have severely impacted the market capitalization of the technology giant. The company had informed that its revenues would be in the range of US$89 billion-US$93 billion for the December 2018 quarter. The mid-point of US$91 billion was lower than the expectations of the Wall Street analysts as they were expecting US$93 billion. 

Apart from the disappointing expectations for the December quarter, another news from the executives of Apple further reduced the share price of the company. The executives have also informed that they would not be giving the number of iPads, Mac computers as well as iPhones moving forward which also weighed on the stock price because the investors in the company were also tracking the numbers. However, for the September 2018 quarter, the company has managed to outpace the expectations of the analysts by generating the revenues of US$62.9 billion. However, the analysts were expecting that the company would report US$61.5 billion. The top management of the company also stated that the sales estimates are likely to witness the negative impacts of $2 billion because of the foreign exchange rates. They also stated that the company has been witnessing macroeconomic headwinds in some emerging markets. These emerging markets included Turkey, Brazil, Russia as well as India.

The global analysts are expecting that Apple might encounter some challenges from the supply side because of the trade tensions going on with China. The battle between the United States and China might get worse.  The investors’ sentiments might get weighed by the comments from the top management which focused on disappointing sales. Considering the closing price of Apple on November 1, 2018, the share price has witnessed a positive momentum in 2018 thanks to the purchase made by Warren Buffett as well as the share buy-back program amounting to US$100 billion.

Apple stated that the revenues it generates from the services like the App store, iCloud, as well as Apple Music, touched US$10 billion which was in line with what the analysts had expected. The investors in Apple are more focused on the growth prospects which are available in the services business of the company. As per the top management of Apple, the company would be witnessing the minimum taxes on the foreign earnings thanks to the new tax law which has been passed in the US.


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