FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
100,765,656Confirmed
2,163,733Deaths
72,777,496Recovered
Fetching Location Data…
Advertisement
Advertisement
Alan Farley
AAPL

Dow component Apple Inc. (AAPL) reports earnings after Thursday’s U.S. closing bell, headlining the busiest week for big tech stocks of the third quarter earnings season. Analysts are pounding the tables ahead of the release, expecting a profit of $0.70 per-share on $62.7 billion in Q3 2020 revenue. While that marks just 23% of Q3 2019 earnings-per-share (EPS), Wall Street’s undivided attention is now focused on last week’s iPhone release.

Advertisement
Know where the Market is headed? Take advantage now with 

75% of retail CFD investors lose money

iPhone 12 Should Drive Higher Sales

The next iPhone generation should book excellent sales and impressive margins, if the euphoric early teardowns and reviews are any guide. The release marks the start of the 5G era for Apple, even though the buildout won’t be done for three to five years. The higher price tag crushes the $1,000 barrier after resistance in the early days of the iPhone 11 while a boost in graphic performance will improve gaming capabilities, underpinning Chinese and Asian sales.

Cowen’s Krish Sankar issued upbeat commentary after the Oct. 13 release event, stating “We maintain our Outperform rating on AAPL as we believe the arrival of 5G wireless and a range of screen form factors could be a catalyst for consumers to replace older devices. The refreshed iPhone product family was largely in line with our expectations, and the modest sell-off in the stock post the event is not surprising given the recent appreciation in shares”.

Advertisement

Wall Street And Technical Outlook

Wall Street has grown more cautious in recent months, due to returns in excess of 50% so far in 2020. Current consensus yields a ‘Moderate Buy’ rating, based upon 25 ‘Buy’, 8 ‘Hold’, and 2 ‘Sell’ recommendations. Price targets currently range from a low of just $67 to a Street-high $150 while the stock closed Friday’s session $10 below the median $125 target. There should be plenty of room for upside after a strong report, given this placement.

The rapid share appreciation set off overbought technical readings during the summer, triggering an intermediate correction just two days after the Aug. 31 four-for-one stock split. Price action has been testing support at the 50-day moving average for more than 7 weeks while long-term relative strength indicators have slipped into sell cycles that could persist until year’s end. Given these headwinds, Apple could remain rangebound until the first quarter of 2021.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US