After Apple announced last week that it wouldn’t be able to meet its previously-issued Q220 revenue forecast due to coronavirus-related supply and demand disruptions in China, shares are down markedly in Monday trading as concerns about the spread of COVID-19 continues to weigh on global markets.
Evercore ISI analyst Amit Daryanani wrote over the weekend that he was lowering his March-quarter revenue estimate by about $8.6 billion.
“Our estimate reduction is predominantly driven by [coronavirus] supply issues and to a lesser extent weaker demand trends in China,” he wrote. “However, we think [Apple] revenue has merely been delayed versus lost and our FY20 estimates are unchanged – though we concede this is a fluid situation and revenues could be pushed out further into the December quarter.”
MacDailyNews Take: Shh! Let us back up the truck first!
Too soon to back up the truck just yet.
It’s hard to tell which way Apple’s stock is going after today. The market is just too unpredictable. It’s probably being controlled by trading algorithms. I honestly don’t see the point of such a sell-off when they’re going to be buying back the stock in a few days. Whatever. I’m not concerned. I’m only thinking long-term. Delayed revenue is fine with me. I’ll stay pat and wait for the next couple of quarters when Apple makes up that lost revenue. As long as I’m getting my dividends, why should I worry about the dips.
As far as CoViD-19 is concerned, the mortality rate isn’t that high and I certainly expect most infected people to recover as long as they were healthy to begin with. Most of the fatalities were elderly or people with compromised immune systems. I’m not going to guess about how widespread it will be or how long it will take to go away. I have no control over that and I’m not going to panic. For me, it’s just another not so unusual day.
So the check is in the mail?