Apple is preparing to release its latest quarterly earnings report after the market closes on Thursday. Anticipation is high, as the iPhone manufacturer is expected to announce record revenue figures. Market analysts and investors are closely monitoring the situation, with options pricing indicating that traders foresee a potential movement of about 4% in either direction for Apple’s stock following the disclosure of its financial results.
Apple’s fiscal first-quarter earnings report is expected to show impressive numbers. Current predictions suggest that Apple’s stock, which closed around $256 on Wednesday, could rise to approximately $266 at its peak, coinciding with expectations of robust performance tied to demand for the iPhone 17. On the downside, the stock could dip to around $247. Presently, Apple shares are trading about 11% lower than their recent highs observed in early December, despite positive signals from the global smartphone market.
The company’s last performance report in October exceeded estimates, with CEO Tim Cook expressing optimism about securing record sales during the holiday season. Given that Apple usually sees its highest quarterly earnings during the holiday season, strong iPhone sales could significantly influence the stock’s performance. Investors are also keen to gain updates on Apple’s artificial intelligence initiatives, especially amid discussions that suggest Apple may be lagging behind other technology giants in this fast-evolving sector.
Visible Alpha estimates predict Apple could post a remarkable revenue figure of $138.11 billion, with earnings per share anticipated at $2.67, reflecting an 11% growth year-over-year. However, some analysts from major financial institutions, including JPMorgan, UBS, and Morgan Stanley, have raised concerns regarding a memory chip shortage potentially affecting Apple’s profit margins. While they believe the overall impact may be limited, uncertainties over increasing memory costs could overshadow the anticipated positive iPhone sales results.
Currently, Wall Street analysts generally hold a more bullish outlook on Apple’s stock. Among the eight analysts rated by Visible Alpha, four have recommended buying the stock, three have provided neutral ratings, and one analyst has advised selling. The average price target for Apple stock stands at around $291, indicating a potential upside of 14% from the most recent closing price, which would be slightly above its previous record.
Overall, despite some caution regarding supply chain issues, the prevailing sentiment is optimistic, with many expecting that Apple’s strong performance during the holiday season will drive the stock higher, reflecting confidence in the brand’s resilience and market presence.