AAPL Stock Recoups Losses Incurred After Tim Cook Slashed Apple's Revenue Guidance

AAPL shares are currently trading above the $157 mark on the intraday market, recouping virtually all losses incurred since Apple CEO Tim Cook slashed Apple's revenue guidance by up to $9 billion for the first quarter of its 2019 fiscal year.

AAPL closed at $157.92 on January 2, immediately prior to Cook revealing the shortfall in an after-hours letter to shareholders, and is now trading just cents below that level. The stock has gradually recovered over the past two weeks since establishing a new 52-week low of $142 on January 3.

Apple originally guided for revenue of between $89 billion and $93 billion in the three-month period ending in December, but revised its estimate to $84 billion due to "fewer iPhone upgrades" than it anticipated, primarily due to "significantly greater" economic weakness than it projected in the Greater China region.

The letter sparked concerns among some investors and analysts that Apple has reached "peak ‌iPhone‌," especially given Apple's revelation that it will no longer disclose unit sales in its quarterly earnings reports going forward.

While the ‌iPhone‌ accounts for around two-thirds of Apple's revenue, the company has repeatedly touted the continued growth of its services, including the App Store, Apple Music, iCloud, iTunes, and so forth, which combined for a nearly 19 percent increase in revenue on a year-over-year basis in the quarter.

Apple is widely expected to launch a streaming TV service this year that will likely boost the revenue of that category even further.

In his letter to shareholders, Cook said Apple is undertaking and accelerating multiple initiatives to improve its results, including making it simple to trade in a phone at its stores. Back in November, Apple launched a promotion offering up to $100 in extra trade-in credit towards a new iPhone XR or iPhone XS.

AAPL will report its earnings for the first quarter of fiscal 2019 on January 29, followed by a conference call to discuss the results at 2 p.m. Pacific Time.


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14 months ago
Not quite - AAPL started dropping long before Tim made the news official. It was the worst kept secret on Wall Street. Analysts were warning about this for a while.
Rating: 16 Votes
14 months ago
Please don’t make this an AAPL stock update forum.

Stocks move up and down...sometimes quickly. The whole market moved down a lot and had now recovered some.

Apple has a way to go, but it basically moved from $160 to $230 in 5 months last year.

People constantly quoting the $230 price don’t really have much to offer.

The price of AAPL basically means nothing without context.
Rating: 8 Votes
14 months ago
This is somehow a reflection of Apple doing well suddenly - or the realistic simple market fluctuation?

No-news news!
Rating: 7 Votes
14 months ago
Shocking. Everyone on MR said they were going out of business unless the price of the XS Max was dropped to $199.
Rating: 7 Votes
14 months ago
A slightly more long term view shows Apple down approximately 30% from its high. Perspective is important.
Rating: 6 Votes
14 months ago
I really believe Cook needs to be shown the door. Every day, his leadership style and their results are looking like what conventional leaders like John Scully did to Apple who was driving the company into a technology development ditch by focusing on increasingly reducing incremental development of non compelling products rather than finding new innovative disruptive technologies that would lead to a decade of explosive growth.
Rating: 5 Votes
14 months ago
Apple was trading in the $210s up to early November - ~$207 is the Trillion dollar mark, it's still a long way down from when it was riding high in the second half of last year... though was clearly undervalued at $150 and very cheap even at its current price.
Rating: 4 Votes
14 months ago

Everyone on MR said they were going out of business unless the price of the XS Max was dropped to $199.

I have been pretty active on the forum lately, and I don't remember any post stating this......

Actually, it seems like any posts on MR lately that state something similar to "Apple is doomed" are almost always people posting it sarcastically.
Rating: 3 Votes
14 months ago

Apple was trading in the $210s up to early November

Yes. Still over 30% they would need to gain. This is not great news.
Rating: 3 Votes
14 months ago
In my opinion, there's three things happening. 1) Global economic headwinds especially in China; 2) High value of the dollar; and 3) Market saturation.

A separate question is why. 1) Trade war plus hangover from sugar rush of tax cuts; 2) I have no idea; 3) iPhones are expensive and lack a compelling reason to upgrade.

With pressure coming for Apple to reduce its 30% app store fee, the only way the stock is going to increase meaningfully, is for the company to find new revenue sources.

Is that gonna happen? I haven't read anything to suggest it will. So probably for the short term AAPL will not regain 224/share.

That's my wild speculation, to add to the analysts' wild speculation.
Rating: 2 Votes

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