As Apple, the world’s most valuable company, prepares to release its quarterly results on Thursday, the tech giant finds itself amidst a wave of skepticism despite the success of its latest iPhone model, the iPhone 15. Analysts and market experts have expressed concerns, but Apple enthusiasts remain optimistic.
Mixed Sentiments on Wall Street
The lead-up to Apple’s quarterly report has been marred by negative chatter in recent weeks. Market analysts, such as Dan Ives from Wedbush Securities, have noted a prevailing negative sentiment on the Street, describing it as a “groupthink mentality.” However, Ives, in contrast to the prevailing sentiment, has expressed confidence in Apple’s performance, citing strong iPhone 15 growth observed in the field.
China’s Challenge
One of the challenges Apple faces is a decline in iPhone 15 sales in China, its second-largest market. Reports have indicated that the new iPhone model is falling short compared to its predecessor, the iPhone 14. Despite this setback, Ives anticipates positive comments from CEO Tim Cook regarding the Chinese market. He believes that over 100 million iPhones in China are eligible for an upgrade, which could potentially boost sales figures.
Financial Projections
In terms of financial projections, Apple is expected to report a nearly 8% growth in profits, amounting to $1.39 per share, compared to $1.29 earned during the same period last year. However, revenue figures are anticipated to dip slightly to $89.2 billion from $90.15 billion, as tracked by Refinitiv. Despite this, market experts remain hopeful about the company’s performance.
Market Analysts and Stock Picks
Market analysts, including Goldman Sachs, have maintained their confidence in Apple, citing its “Sustained Services expansion story enabled by growing installed base.” Goldman Sachs, in its November “U.S. conviction list,” reaffirmed Apple as one of its top stock picks with a price target of $213 per share. Apple’s inclusion in the list for 153 days underscores its consistent appeal to investors.
Market Standing and Challenges
Apple shares have exhibited impressive growth, rising by 34% this year, outperforming both the Nasdaq Composite and S&P 500, which saw gains of 25% and 10%, respectively. However, Apple’s market value, once at a historic $3 trillion, has slightly dipped to $2.7 trillion, maintaining a lead over competitors like Microsoft. The company faces challenges, but its ability to navigate the market fluctuations showcases its resilience in the face of adversity.
In the face of skepticism, Apple enthusiasts and investors eagerly await the company’s quarterly report, hoping that the iPhone 15’s success in the field translates into robust financial figures, reaffirming Apple’s position as a technology powerhouse.
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