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.
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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