Every year in early autumn Apple holds its event where it presents new iPhones, Apple Watches, and iPads. This year wasn’t an exclusion. But yesterday’s presentation didn’t result in Apple stock growth, and here’s why.
Covid-19 is jeopardizing Apple’s plans
There are some doubts about Apple sustainability amid coronavirus. Who will buy and who will produce new IPhones?
Coronavirus impact on Apple
At first, problems started in Asia. Chinese factories couldn’t supply iPhones because of the lockdown with strict quarantine measures for thousands of laborers. However, the steps taken by the Chinese authorities helped to stop the spread of the disease. Now China is resuming production.
Then, the virus hit the USA and Europe causing shops to close and people to stay at home. That, in turn, hugely reduced incomes. Obviously, that would diminish demand for new Apple products. This is a crucial factor for the future financial health of the corporation. We can see now how Apple’s plans are getting ruined. The unveiling the iPhone 9/SE2 has already been delayed. Even the much-anticipated iPhone 12 seems to be released far later than planned. There are all reasons to expect that these problems will affect Apple stock price preventing it from the upside.
Apple stock had been declining since February 19, then it reversed on March 23 and reached the 271.5 mark breaking through 23.6% and 50% Fibonacci retracement levels. Yesterday it went down and now it’s on 262.51. The nearest support levels are at 255.3 or 38.2% Fibonacci level and at 248.00 where the 50-day Moving Average almost crosses the upward trendline.
The quarterly revenue, January to March, combined to a 12% fall from the previous year. Wall street analysts continue to make their financial forecasts worse and target prices lower for Apple.
The manufacturing problems are over now, so the success of the company depends on the purchasing power of global comsumers. The latter will likely take a serious blow in the upcoming months. In the long-term Apple may recover its prior revenue. We should learn more from Apple’s earnings release and during the call with analysts and investors on April 30.
Remember that by trading stock CDF traders are able to open sell trades on Apple stock!
Richard Branson offloaded nearly 10 million shares, which equals about 4% of the Virgin Galactic stock, leaving him with an 18% stake.
Today at 00:00 GMT+3 SPCE will present the second quarter 2021 financial results. We will get to know everything about the company's financial condition and plans.
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).