Apple shares down on Snap’s profit warning citing economic deterioration

Apple shares were poised to give back some of their gains from Monday in premarket trading on Tuesday, dragged down by a profit and revenue warning from social-media company Snap which cited faster than expected economic deterioration.

Snap, Inc.'s Snapchat icon
Snap, Inc.’s Snapchat icon

Sabrina Escobar for Barron’s:

The tech sector staged a tentative rebound on Monday, with the Nasdaq Composite up 1.6%. Apple stock closed at $143.11, up 4%, after UBS analyst David Vogt pointed out that iPhone demand in China remained remarkably strong. The Wall Street Journal meanwhile reported that the company had told some manufacturers it wanted to increase production outside of China in response to Beijing’s zero-tolerance Covid policy.

But those gains seemed ready to be erased on Tuesday, with Apple down 1.3% to $141.19 ahead of the opening bell and Nasdaq futures down 1.6%. The turndown seems to be driven by Snap’s revised guidance. The photo chat app lowered earnings and revenue expectations late Monday, saying the macroeconomic environment has deteriorated faster than anticipated…

For many analysts, Apple remains a good long-term bet even amid the tech selloff.

“While the nervous market backdrop is creating a fearful environment for tech stocks, we believe Apple’s growth story remains well intact despite the macro,” wrote Wedbush analyst Daniel Ives in a research note last week. The stock is Ives’ favorite name in tech, as he believes the iPhone upgrade cycle is being underestimated by investors.

MacDailyNews Take: Oh, Snap!

(Sorry, we just couldn’t resist.)

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  1. Can’t wait for the installed sham “president” to be dispatched and for President Trump to return in 2024 (after the GOP runs roughshod over the Dems in 2022).

    1. Sound political strategy: Hoping the opponent dies. Because your ideas are proven failures and all you have, beyond hoping for death, is screaming “rayciss!”

      Tell us all about “Russian collusion,” again, you witless rube.

      1. Could someone get Ms. Clinton on the line? She has long had something on/for Mr. Orange. In fact, she used her info to eff the entire country for 4 yrs and billions.

    2. Click on the question mark for the picture – the link doesn’t want to load directly into this forum.

      @First Then:
      No you witless dumbass – not strategy, just personal wishful thinking.

  2. Snap is responsible for Snap. Apple is responsible for Apple. I find it hard to rationalize a cause-and-effect relationship between Snap’s failures and Apple, Inc. If so, then the “logic” of the stock market is even crazier than I imagined!

    Excuses, excuses, excuses.

  3. Snap has been a loser for years. Not sure what took so long for investors to realize it.

    Special note to the first poster: get a life. No POTUS controls the market. All you agitators so is paralyze the USA with political extremism so nothing ever gets done. No Thanks to you.

    1. No POTUS controls the market?

      canceling the keystone pipeline and enacting policies that are an economic war on oil was a good start. Fundamentally raising the price on energy has started the domino cascade of inflation. So I a very indirect way the President can have a very direct effect on the “market”

      But you get bonus points for defending Biden at all cost. Go team blue !!!

      this didn’t age well

      some how canceling a 9 billon dollar invest tends to make companies second guess future investments.

      We could have gotten cleaner oil from progressive liberal Canada that has meaningful regulations to make sure the oil is claimed responsible but now Biden has a better plan

      he told us what he would do so we shouldn’t be surprised

      so yes a president can effect the market

      1. You obviously don’t understand the word “control”.

        It takes a special level of stupidity or corruption to use your cute little WordPress site to post anti-US political FUD in response to the news that Snap ad revenue stinks. Most people rejoice that Snap is imploding.

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