Apple Shares Rally On Q1 Beat - Where to Next?
Apple Shares Higher Pre-Market
Shares in Apple are trading around 2.5% higher today ahead of the US open following the reporting of better-than-forecast Q1 results yesterday. Apple posted Q1 EPS of $1.52, vs $1.42 expected. A beta of 6.36%. Revenues were also above forecasts at $94.836 billion vs $92.906 billion expected, a beat of 2.08%. On the back of the more than 36% rally off the 2023 lows, the results were enough to drive Apple shares to fresh highs on the years despite the breakdown of the data showing that overall sales figures were down for a second consecutive quarter.
While sales figures were weak there were some highly positive takeaway from the earnings call which have clearly buoyed investors. CEO Tim Cook noted that Q1 marked a record quarter for the iPhone with installed devices hitting all-time highs despite a difficult macro backdrop. Additionally, Apple services recorded a record $20.9 billion in sales over the quarter with pair subscriptions now at 975 million, up 150 million from the prior quarter.
Bullish View
With the Fed having pivoted on rates this week and expectations of a pause and potential rate cuts later in the year, the near-term outlook looks positive for Apple and the tech sector as a whole. While USD rate expectations drop off, riskier assets should find better demand. The caveat to this will be how US recession risks develop in coming weeks and months. If fears of a recession grow more prominent this might start to hinder tech stocks.
Technical Views
Apple
Following a brief correction below the 167.45 level, Apple shares are today trading back above the level, which should see a bullish shift in momentum studies. With the uptrend well intact and 167.45 supporting, the focus is on a further push higher and a test of the 176.14 level next. To the downside, 157.39 is the next support level to note.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.