“As Apple slowly recovers from the melee over its China revenue miss, one analyst is calling for more optimism about the tech giant given its strong fundamentals,” Aarthi Swaminathan writes for Yahoo Finance. “Gene Munster, longtime tech analyst and Loup Ventures managing partner, is still bullish on Apple stock for ‘the simple reason is that the fundamentals [and] the competitive landscape really hasn’t changed here.'”
“Munster’s belief is that there’s a ‘disconnect between the fundamentals of Apple and the headlines,’ because the company is on track to report its best earnings quarter in the history of the company — despite the miss,” Swaminathan writes.
MacDailyNews Note: Apple’s best revenue quarter ever was holiday 2017 (fiscal Q118) with $88.29 billion. In the now infamous “Letter from Tim Cook to Apple investors,” Cook wrote that Apple expects “revenue of approximately $84 billion” in Q119 (holiday 2018) and “to report a new all-time record for Apple’s earnings per share.”
“Wednesday may have been arguably one of the ‘darkest days in Apple’s history,’ but Munster believes that fears over a China slowdown are likely to subside soon under Cook’s leadership,” Swaminathan writes. “‘That cash [from the projected earnings] is something that Tim Cook has control of and he can use that to incentivize the stock,’ Munster said. ‘People don’t really wanna hear it today, but the business is actually doing really well.'”
Read more in the full article here.
MacDailyNews Take: “There’s a disconnect between the fundamentals of Apple and the headlines.” What else is new?
As we wrote on Wednesday, “The good news: This too shall pass.”
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