Apple Inc. (NASDAQ:AAPL): Apple may be about to exit its correction territory

 


Apple stock began to pull back Monday, on an IDC report showing Mac shipments during the first three months of this year were down 40% Y-O-Y, citing the reason being the end of COVID-driven demand. The stock manged to bounce off the trendline support at $160 on Thursday and is now retesting the 10% correction level at $164.44.

As a matter of fact, Mac sales were already weak in Apple's fiscal Q1 2023, down 28.6% Y-O-Y to $7.7 billion, while iPad sales were up 29.6% Y-O-Y to $9.3 billion. The good news is that Apple is working on new Mac laptops that could help reverse the trend, per Bloomberg.

Another reason that the market seems not to be overly worried about the IDC report may be because iPhone remains the key driver to Apple's earnings recovery for the next two years, according to Harsh Kumar, analyst at Piper Sandler. In fiscal Q1 2023, Apple generated $65.8 billion in revenue from the sales of iPhones.

Apple is expected to report its fiscal Q2 2023 earnings on May 4. Meanwhile, the stock could be heading higher to retest the trendline resistance at ~ $168 as its momentum continues. Just a reminder, a golden cross chart pattern emerged last month and the stock could double from here, similar to what happened in August 2016.

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!


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