Apple Inc. and Amazon will present their Q4 earnings reports on October 28. Let us take a closer look at Apple Inc. in order to assess the company’s stock growth perspectives.
Market capitalisation of Apple Inc. rose by only 12.5% this year. And such modest gains could be explained by the enormous rally of its stocks by 80% in 2020. Despite high iPhone sale figures, investors fear that the shortage of microchip supplies may hamper the company’s iPhone 13 production plans this year.
As for the upcoming report, analysts expect Q4 adjusted earnings per share (EPS) of Apple Inc. to be at $1.24 while the revenue is expected to be $84.79 billion. For the Q3, Apple Inc. reported the quarterly revenue of $81.43 that was 36% up from the previous year. IPhone sales hit $39.6 billion in the third quarter.
Apple Inc. stocks closed at $149.32 on Tuesday. For the last five trading sessions, stocks have been trading in the narrow range with the upper margin set at 61.8% and the Fibonacci level of $149.87.
It is hard to expect any further growth before this crucial resistance level is broken through. Besides, the zone of $149.82-150.86 is generating strong resistance considering highs of July and August, that are within this zone.
The support line could be drawn at the lows on October 13, 18 and 21. And the current price is below that line. So, yesterday’s spike of $150.84 looks more like a retest of this line as a resistance. The fact that the divergence was at its peak on October 22 should also be mentioned as a negative factor for Apple Inc. stock prices.
Put all together the above factors indicate that further growth of Apple Inc. stock prices is in serious doubt. The rebound of the price below $147.64 may serve as a confirmation of this. This may initiate a correction of stock prices towards $144.50-145.0.Credit Suisse analyst Matthew Cabral has kept his Neutral recommendation for Apple Inc. stocks with a target price at $150 per share just before the Q4 earnings report publication.
Market capitalisation of Apple Inc. rose by only 12.5% this year. And such modest gains could be explained by the enormous rally of its stocks by 80% in 2020. Despite high iPhone sale figures, investors fear that the shortage of microchip supplies may hamper the company’s iPhone 13 production plans this year.
As for the upcoming report, analysts expect Q4 adjusted earnings per share (EPS) of Apple Inc. to be at $1.24 while the revenue is expected to be $84.79 billion. For the Q3, Apple Inc. reported the quarterly revenue of $81.43 that was 36% up from the previous year. IPhone sales hit $39.6 billion in the third quarter.
Apple Inc. stocks closed at $149.32 on Tuesday. For the last five trading sessions, stocks have been trading in the narrow range with the upper margin set at 61.8% and the Fibonacci level of $149.87.
It is hard to expect any further growth before this crucial resistance level is broken through. Besides, the zone of $149.82-150.86 is generating strong resistance considering highs of July and August, that are within this zone.
The support line could be drawn at the lows on October 13, 18 and 21. And the current price is below that line. So, yesterday’s spike of $150.84 looks more like a retest of this line as a resistance. The fact that the divergence was at its peak on October 22 should also be mentioned as a negative factor for Apple Inc. stock prices.
Put all together the above factors indicate that further growth of Apple Inc. stock prices is in serious doubt. The rebound of the price below $147.64 may serve as a confirmation of this. This may initiate a correction of stock prices towards $144.50-145.0.Credit Suisse analyst Matthew Cabral has kept his Neutral recommendation for Apple Inc. stocks with a target price at $150 per share just before the Q4 earnings report publication.
Trade closed: target reached
