After the close of yesterday's trading session, the once first-largest company by capitalization, Apple, reported on its activities for the 4th quarter of 2023. The actual numbers exceeded expectations:
→ revenue: actual = USD 119.5 billion (expected = USD 117.9 billion);
→ earnings per share: actual = USD 2.3 (expected = USD 1.99).
It would seem that things were going well, but this was due to the holiday period and the traditional seasonal increase in purchases of Apple products. In the future, analysts can expect a decrease in revenue, as was the case in 2023.
Confirming this possibility, Apple gave weak guidance for the next quarter given the decline in demand in China.
As a result, in post-market trading, AAPL's share price fell approximately 3% to the support level (shown by the black line) drawn near this year's lows.
The AAPL stock chart today shows that:
→ level A looks like an important resistance: the price cannot overcome it in order to move up along with the index;
→ a new threat of a bearish breakdown of the lower blue trend line has emerged - if it happens, the bears may try to test the important low of autumn 2023 (level B).
While the picture looks flat, given that AAPL's share price has been in an A-B range since the middle of last year, the situation could be potentially bearish given that the price cannot rise in a bull market.
Investors' hopes may be associated with the presentation of the Vision Pro headset, as well as with achievements related to the introduction of AI. As Tim Cook said, the company has “a lot of internal work going on,” but Apple is not revealing details yet so as not to “come to the forefront.”
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