“Apple Inc. once a market leader, has fallen about 30% since its peak in October, more than triple the decline of the S&P 500,” Michael Kramer writes for Investopedia. “And for good reason.”
“CEO Tim Cook essentially told investors in early January that the company’s uninterrupted revenue growth streak was over due to weakening iPhone sales,” Kramer writes. “That news has turned once bullish investors and analysts into skeptics as they look forward to the company’s fiscal first-quarter report out next week, January 29.”
Kramer writes, “As of now, analysts are forecasting revenue to fall nearly 5% in the fourth quarter to $84 billion, a dramatic reversal from a previous forecast of a 3% gain. That’s a massive 8 percentage point change. The coming fiscal year doesn’t look much better. Analysts see revenue falling by 2% to $260.5 billion this year, while earnings are expected to rise just 2%.”
Read more in the full article here.
MacDailyNews Take: The question is how much is already baked into the stock price.
Apple is scheduled to report earnings after the closing bell (right around 4:30pm Eastern) on Tuesday, January 29, 2019.