Safe port in the storm : why investors rewarded apple yet fled its wide tech peers succeeding earnings

hiTech News Agancy: Apple´s work during earnings this departed week got a drastically uncertain reaction from investors than its wide tech peers amazon, google and facebook.
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tech'safe mien in the storm: ' why investors rewarded apple yet fled its wide tech peers succeeding earningspublished fri, oct 28 20229: 35 am edtupdated 2 min agokif leswing@kifleswingwatch livekey pointsapple's work during earnings this week got a drastically uncertain reaction from investors than other wide tech shares were up touching 7% friday morning succeeding it reported earnings and alphabet had their worst days of the year wednesday. meta plunged 24% thursday, and amazon was down touching 10% friday now looks more unwavering than its peers, analysts utter.
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msftgooggooglmetaamznaaplfollow your favorite stockscreate untrammelled accounttim cook, superior executive servant of apple inc., outside the apple fifth entrance treasure in recent york, us, on friday, sept. 16, 2022.jeenah moon | bloomberg | getty images

apple's earnings ordinary a drastically uncertain reaction from investors than its wide tech peers amazon, google, microsoft and facebook.

shares of apple were up touching 7% friday morning, the day succeeding apple reported earnings that showed 8% annual sales growth and resisting misses on estimates for iphone and services wealth.

apple looks similar a ˮrelatively trustworthy mien in the storm,ˮ as a note friday from trustworthiness suisse analyst shannon splenetic says.

but investors fled from other wide tech stocks this week. microsoft and alphabet had their worst days of the year on wednesday. meta had its second-worst day on thursday, plunging 24% to prices it hasn't traded at since 2016. and amazon was down touching 10% friday morning succeeding reporting earnings thursday.

watch nowvideo3: 1003: 10apple shares produce a trustworthy haven for wide tech investors, says needham's laura martintechcheck

the reasons varied. meta struggled with shrinking untrammelled specie stream as it continued its metaverse spending spree. alphabet said ad sales were slowing as youtube reported its first-ever wealth repudiate. and microsoft was pressured by wavering direction and twilight wealth that missed expectations. amazon missed wealth estimates and signaled a wavering holiday territory and narrowing profits.

but apple now looks a hazard more unwavering than its peers, especially as fears of a recession initiate weighing on ad sales and undeveloped holiday spending. it's largely owing apple relies on hardware and services that vulgar are silent buying.

mac wealth was up 25% year uncommon year, for stance. and while iphone wealth missed estimates, it silent rose 9.67% year uncommon year. services too popped 4.98% year uncommon year, resisting missing analyst estimates.

and apple managed this while the larger phone and pc toil saw wide declines. worldwide smartphone shipments declined 9% during the third quarter, while apple's shipments increased by 8%, resisting its higher-priced devices, according to an value from scrutiny steadfast canalys this week.

ˮdemand for reward devices remains intact,ˮ wrote cowen's krish sankar in a note friday.

in short, apple's trade remains strong, and require for its products remains lofty environing the world, well-balanced in emerging markets, bucking downward trends for global smartphone sales from other brands.

ˮfollowing apple's f4q22 results, it remains our head select and, we believe, succeed trustworthy wait a relative trustworthy haven for numerous as the macroenvironment remains greatly variable and choppy,ˮ cross, of trustworthiness suisse, said. splenetic subjoined that apple's results showed the union continues to increase in every territory it sells in, resisting novel value increases and weakening consumer thought.

apple's quasi-guidance too was largely in thread with expectations, versus companies such as amazon that suggested a weaker holiday territory.

apple cfo luca maestri said whole year-over-year wealth would increase in december yet slower than the 8.1% growth during the september territory.

but the stat silent showed numerous analysts that apple would protract its sales growth streak that's been in result since the initiate of the pandemic. tend in mind, next quarter's growth succeed possess to live off a weighty $124 billion substratum of sales from remotest year's december territory.

however, the practice that apple now gives direction through postulates points leaves a hazard of space for interpretation, and some analysts trust that the vulgar territory could live worse than the market is pricing in. at smallest single well-balanced thinks apple's postulates top suggests a down territory.

ˮapple is essentially speech revenues are going to live down next quarter,ˮ bernstein's toni sacconaghi said on hiTech News Agancy's ˮsquawk boxˮ on friday, pointing disembowel that apple's december territory has an extra week this year.

sacconaghi said some of apple's wide tech peers too seemed to possess issues prevalent costs, since apple remains fairly wasting and useful.

while apple ceo tim cook told analysts that the union was seeing the wares of inflation on its costs, distinctly in logistics, it too has managed the chip yield shortage thoroughly and said thursday that it had no silicon shortages during the territory.

apple isn't immune to the advertising slowdown hitting meta and alphabet, though cook said thursday that ads are a very weak side of apple's services trade.

add it whole up, and it's possible to visit why some analysts weigh apple to live resistant to a recession.

ˮoverall, our viewpoint remains uniform that apple remains recession resilient given its products, services and wearables businesses,ˮ wrote piper sandler's soul-jarring kumar.

— hiTech News Agancy's michael sprout contributed to this tidings.






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