Market Analysis: Apple Stock Plunges 2% Despite Better-than-expected Sales

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Yesterday, after the close of the main trading session on the stock exchange, the largest company by capitalization reported for the quarter.

  • AAPL EPS of USD 1.26 (expected $1.195);
  • Gross revenue was USD 81.8 billion (as expected);
  • The decline in iPhone sales was offset by strong sales in the services segment (which includes Apple TV+) and sales in China, which were up 8% year-on-year.

However, AAPL's share price fell in premarket today, probably because market participants are concerned about:

  • a forecast for a further decline in iPhone sales;
  • vague prospects for the release of a new product Vision Pro;
  • Apple's rising R&D spending reaching USD 22.61 billion a year.

The capitalization of the company fell below USD 3 billion.

The AAPL stock price chart shows that the price has not reached the psychological level of USD 200, while the market may be supported by:

  • the lower limit of the rising channel, within which the price has been moving since the spring of 2023;
  • the level of USD 176 per AAPL share – the price repelled from it in June.

The opening of trading is expected at the level of USD 187. According to MarketWatch analysts, the target price for AAPL shares is USD 195.00.