Apple Stock News and Forecast: AAPL takes a bite out of recruiters
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- Apple reportedly lays off recruiters, according to Bloomberg.
- AAPL stock has rallied over 30% from June lows.
- Apple stock runs into trend line resistance.
Apple (AAPL) is never far from the limelight, but a report today from Bloomberg says the company may be slowing progress in the recruiting sphere. This was recently alluded to on its most recent earnings call and should not come as too much of a surprise given the potential for a global economic slowdown. It remains to be seen how iPhone demand holds up in the face of an inflationary recession. Usually, consumers switch to lower-cost items, which would put Apple right in the crosshairs of a consumer-led slump in luxury brands.
Also read: Apple Stock Deep Dive: AAPL price target at $100 on falling 2023 revenues
Apple stock news
Bloomberg reported on Tuesday that Apple had let go of some contract recruiters as part of its push to curb spending. The report cited people familiar with the matter. About 100 contract workers were let go, according to the report. With a global workforce of over 150,000, a cut of approximately 100 seems insignificant, but the fact that these were all recruiters lends slightly more credence to the hiring freeze rumors doing the rounds.
Apple has also been rumored to be looking to take its revenue from advertising well past the current $4 billion level. Potential advertising on Maps, Apple TV and other products are said to be in the cards as the tech giant seeks to increase revenue generation and broaden away from the iPhone. The iPhone remains the dominant revenue driver in the Apple makeup and is one of the main reasons we opted for a shocking $100 12-month price target in our deep dive.
This may seem shocking to some, but note that Apple traded down to $129 in June before the recent rally. This is a 12-month price target and takes into consideration how a global inflationary slowdown has double headwinds. There are not only rising costs, which hit margins but also falling iPhone demand. We did slightly tweak our numbers following the recent earnings release, but our current price target of $110 is still notably bearish versus consensus.
Apple stock forecast
Longer term we gave Apple a $110 12-month price target. In the shorter term, let's take a look at the significant resistance we have just run into. A trend line currently holds all three major highs in place and confirms the downtrend. A break would, therefore, be significant. This move already has been significant with a 30%-plus move in not much over a month.
AAPL stock is now overbought on the Money Flow Index (MFI) and the Relative Strength Index (RSI). It is significantly overbought on the RSI at 75, with consensus overbought at 70. Breaking $173.50 brings $179 into the target, but the risk-reward is to the downside in the short term.
Apple (AAPL) chart, daily
- Apple reportedly lays off recruiters, according to Bloomberg.
- AAPL stock has rallied over 30% from June lows.
- Apple stock runs into trend line resistance.
Apple (AAPL) is never far from the limelight, but a report today from Bloomberg says the company may be slowing progress in the recruiting sphere. This was recently alluded to on its most recent earnings call and should not come as too much of a surprise given the potential for a global economic slowdown. It remains to be seen how iPhone demand holds up in the face of an inflationary recession. Usually, consumers switch to lower-cost items, which would put Apple right in the crosshairs of a consumer-led slump in luxury brands.
Also read: Apple Stock Deep Dive: AAPL price target at $100 on falling 2023 revenues
Apple stock news
Bloomberg reported on Tuesday that Apple had let go of some contract recruiters as part of its push to curb spending. The report cited people familiar with the matter. About 100 contract workers were let go, according to the report. With a global workforce of over 150,000, a cut of approximately 100 seems insignificant, but the fact that these were all recruiters lends slightly more credence to the hiring freeze rumors doing the rounds.
Apple has also been rumored to be looking to take its revenue from advertising well past the current $4 billion level. Potential advertising on Maps, Apple TV and other products are said to be in the cards as the tech giant seeks to increase revenue generation and broaden away from the iPhone. The iPhone remains the dominant revenue driver in the Apple makeup and is one of the main reasons we opted for a shocking $100 12-month price target in our deep dive.
This may seem shocking to some, but note that Apple traded down to $129 in June before the recent rally. This is a 12-month price target and takes into consideration how a global inflationary slowdown has double headwinds. There are not only rising costs, which hit margins but also falling iPhone demand. We did slightly tweak our numbers following the recent earnings release, but our current price target of $110 is still notably bearish versus consensus.
Apple stock forecast
Longer term we gave Apple a $110 12-month price target. In the shorter term, let's take a look at the significant resistance we have just run into. A trend line currently holds all three major highs in place and confirms the downtrend. A break would, therefore, be significant. This move already has been significant with a 30%-plus move in not much over a month.
AAPL stock is now overbought on the Money Flow Index (MFI) and the Relative Strength Index (RSI). It is significantly overbought on the RSI at 75, with consensus overbought at 70. Breaking $173.50 brings $179 into the target, but the risk-reward is to the downside in the short term.
Apple (AAPL) chart, daily
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.