Stock FAQs

apple earnings met expectations. why its stock is sliding.

by Lauretta Rutherford Published 3 years ago Updated 2 years ago

Apple CEO Tim Cook said on a conference call with analysts that the company saw larger-than-expected supply constraints in the quarter, reducing revenue by an estimated $6 billion. He said the company dealt with shortages of chips as well as Covid-related manufacturing disruptions.Oct 29, 2021

How did Apple's Q4 earnings compare to expectations?

Why Its Problems Aren’t Over. Apple reported disappointing financial results for its fiscal fourth quarter ended September 30, as sales of iPhones failed to match Wall Street estimates. The ...

How did Apple’s services revenue outperform expectations?

Oct 29, 2021 · Text size Apple sold $38.9 billion worth of iPhones in its latest quarter—more than $2 billion less than what Wall Street analysts expected. Feline Lim/Getty Images Apple reported disappointing financial results for its fiscal fourth quarter ended September 30, as sales of iPhones failed to match Wall Street estimates. The stock is losing ground in […]

How has Apple performed compared to the S&P 500 over the years?

Oct 28, 2021 · Shares of Apple stock fell sharply in after-hours trading following the earnings release, dropping by about 4%. The company has provided one-year trailing total returns of 38.1%, slightly behind ...

When is Apple's Q1 FY 2022 earnings report?

Oct 29, 2021 · Apple ( AAPL) reported its Q4 earnings after the closing bell on Thursday, missing analyst expectations on revenue, with its iPhone, Mac, and Wearables businesses coming up short amid the ongoing ...

Does Apple stock go up after earnings?

Why It Can Go Even Higher. Apple stock was rising Friday after the company's blowout earnings — and there are reasons to believe the shares are only going higher.Jan 28, 2022

Does Apple stock drop after earnings?

Historically, it's normal for Apple stock to gain an average of 1.7% in its price for the two weeks prior to the release of earnings data, and for it to go up 0.8% the day after it releases figures. However, the company also loses 0.3% of its value just one day after earnings are reported.

Why is Apple stock price dropping?

Like many technology companies, Apple has struggled to overcome supply chain bottlenecks during the pandemic. Chip shortages and other supply constraints have driven up Apple's production costs and resulted in lost sales in recent years.Mar 14, 2022

Is Apple expected to beat earnings?

Apple will report its earnings results for the fourth quarter of 2021 on Thursday, and it could be the best quarter in the company's history. Wall Street analysts on average estimate that Apple will report revenue of $118.3 billion for the quarter, according to Yahoo Finance.Jan 25, 2022

Should you buy stocks before or after earnings?

Based on the data from the stocks in the Dow Jones Industrial Average index over this past year (2019 to 2020), it makes no difference whether you buy a stock before or after earnings are announced.Jan 31, 2021

What makes Apple stock go up?

iPhone Sales 2 Increasing penetration in current and new markets resulting in share gains, particularly in China and other emerging markets, and successful launches of the next generations of the iPhone will likely drive sales over the next 12-18 months.

Is Apple a good long term investment?

And it's doing this while paying a growing stream of dividends and shrinking its share count to boost shareholder returns. As Warren Buffett alluded to in his letter, Apple is an exceptional business worth holding for the long term.Feb 3, 2022

Is AAPL overvalued?

Meeks' thesis that Apple is overvalued echoes that of other portfolio managers such as The Satori Fund's Dan Niles, who told CNBC in November that the company is the “most overpriced tech stock that exists.” Niles cited Apple's skyrocketing market cap growth relative to the performance of its valuation multiples as ...Jan 7, 2022

Is Apple undervalued?

According to my valuation model, Apple seems to be fairly priced at around 14% below my intrinsic value, which means if you buy Apple today, you'd be paying a reasonable price for it. And if you believe the company's true value is $190.36, then there's not much of an upside to gain from mispricing.Mar 7, 2022

Who owns the most stocks in Apple?

Top 10 Owners of Apple IncStockholderStakeShares ownedThe Vanguard Group, Inc.7.33%1,196,152,755Berkshire Hathaway, Inc. (Investm...5.44%887,135,554BlackRock Fund Advisors4.14%675,688,994SSgA Funds Management, Inc.3.88%633,115,2466 more rows

Why AAPL Stock Has Gone Up

I think there are a few reasons that explain the resilience of Apple stock despite the issues that I described above. First, using share buybacks, the company has managed to keep generating healthy increases in its earnings per share. As a result, most retail investors believe that the company’s profits are increasing.

Why the Situation Could Change

Despite its strengths, Apple stock is not completely immune from downturns. In January 2019, the shares tumbled 10% after Apple cut its Q3 guidance, with the shares reaching their lowest level in about 17 months.

The Bottom Line on AAPL Stock

Despite Apple’s lack of real profit growth amid the stagnation of iPhone demand and the failure of the growth of Services’ growth to meaningfully move the needle, Apple jumped 30% this year and 90% in the last 12 months.

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