Apple Shares Recover Despite Subdued Holiday Quarter Forecast

Apple Shares Recover Despite Subdued Holiday Quarter Forecast

VoM News Desk | November 6, 2023 | 01:21 PM IST | Tech | Follow on Google News

Apple Shares Recover Despite Subdued Holiday Quarter Forecast

Apple Shares Recover Despite Subdued Holiday Quarter Forecast

Apple shares experienced early losses driven by a forecast for a subdued holiday quarter. However, these losses were partly recovered after a US jobs report raised hopes of a pause in Federal Reserve interest rate hikes.

Impact on Market Value

The stock initially fell more than 3 percent, putting Apple on track to lose approximately $40 billion in market value. The decline was triggered by Apple’s holiday quarter sales forecast, which fell below Wall Street estimates. Weak demand for iPads and wearables contributed to these projections, causing concerns about broader holiday demand amid sticky inflation.

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Broader Concerns

Apple’s revenue growth has stagnated in recent quarters and is expected to continue into the next year. Analysts noted that the holiday quarter usually sets the tone for Apple’s fiscal year. Several price targets for Apple’s shares were lowered, with concerns that the company can no longer rely solely on iPhone sales to drive its stock higher.

Support from US Jobs Report

Apple shares received some support after a US jobs report revealed that nonfarm payrolls increased less than expected in October. This news raised expectations that the Federal Reserve might pause its rate-tightening cycle, benefiting shares across the market.

CEO’s Reassurance

Apple CEO Tim Cook sought to allay Wall Street’s concerns about the company’s performance in China. He emphasized that the iPhone 15 models were performing well in mainland China, setting a quarterly sales record for the September quarter. Several analysts welcomed Cook’s remarks, offering a sigh of relief to investors.

VoM News Desk

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