Apple Stock Price and Forecast: AAPL stock falls as revenue misses estimates, EPS in line
- Apple reports earnings after the close on Thursday.
- AAPL stock is poised near all-time highs.
- Stocks remain strong despite growing headwinds.
Breaking: Apple (AAPL) reported earnings after the close on Thursday. Earnings Per Share (EPS) came in at $1.24 versus the estimate of $1.24. Revenue came in at $83.36 billion versus the estimate of $84.85 billion. Apple stock is down over 4% in the after hours. The company put some blame on supply chain and chip issues
Apple (AAPL) is set to report earnings after the close today, Thursday, and will be the highlight of the earnings week. Apple has recently been joined in the $1 trillion dollar club by Tesla (TSLA) with the electric car (EV) market seeing its stock price surge on the back of Hertz giving the EV king its biggest ever order. Microsoft (MSFT) has nearly knocked Apple off its perch as the most valuable company, however, AAPL remains the stock king with a market cap still more than double that of Tesla.
Apple (AAPL) stock news
| Market Cap | $2.46 trillion |
| Enterprise Value | $2.3 trillion |
| Price/Earnings (P/E) | 29 |
|
Price/Book | 39 |
| Price/Sales | 9 |
| Gross Margin | 41% |
| Net Margin | 25% |
| EBITDA | $112 billion |
| 52 week low | $107.32 |
| 52 week high | $157.26 |
| Average Wall Street rating and price target |
Buy $168.89 |
The results as ever will be closely watched, but even more so as Reuters reports Counterpoint Research saying Chinese smartphone sales are down 9% in Q3 2021. Apple is expected to post earnings per share (EPS) of $1.24 on revenue of $85 billion. The results will be released after the close on Thursday, and FXStreet will have an updated release just as they hit the wires.
Apple stock forecast
Given the recent strong earnings beats from the majority of companies we can expect a similar beat from Apple. Taking a position into earnings is riskier than normal though, so manage your risk. How the share price reacts to a beat is the key.
Is this beat expected by investors? If we expect Apple to beat, and so far nearly 84% of S&P 500 companies have beaten estimates, then many investors will also be expecting a beat. That implies AAPL needs a decent beat in the region of 30% to keep the momentum going. The all-time high at $157.26 will clearly be the target, and after that it is open season with resistance fading. In the event of a disappointing number support is at $144.50 provided by the 100-day moving average and August 19 low. Thereafter, $138.31 would be strong support with the 200-day moving average close by.
AAPL 1-day chart
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
