Apple tries to shake off China warning

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Apple (AAPL) has been under pressure for months, but the stock took a huge hit when its CEO, Tim Cook, lowered future guidance and blamed weakness in China for the reduced forecast. AAPL has fallen 21% over the last six months.

Technical Analysis

AAPL was recently trading at $147.07 down $86.4 from its 12-month high and $5.06 above its 12-month low. InvestorsObserver’s Stock Score Report gives AAPL a 9 long-term technical score and a 14 short-term technical score. The stock has recent support above $142 and recent resistance below $157. Of the 28 analysts who cover the stock 13 rate it Strong Buy, 1 rate it Buy, 14 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, AAPL gets a score of 35 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Apple stock has been under pressure over the last six months, but the stock fell nearly 10% on January 2 after the company lowered its fiscal Q1 revenue guidance to $84 billion from a previous midpoint guidance of $91 billion. The company blamed weakness in China for the lower guidance. With the recent selloff, AAPL now trades at a forward P/E of just 10, which should start to attract value hunters. The ongoing trade war between the U.S. and China is definitely a concern, but big hits to both nation’s stock markets will create pressure on both countries to find a resolution to the current situation, and if/when a deal is eventually reached the entire market should move higher and stocks like Apple that have been hit particularly hard should enjoy nice rallies. Apple shares are up nearly 4% after the big selloff on news that the U.S. and China have resumed trade talks, but AAPL remains vulnerable to any negative news regarding the ongoing negotiations. The company will report it fiscal Q1 numbers January 29, and with muted expectations there is a good opportunity for the stock to rally if results come in as expected. Analysts have an average price target of $205.58 on the stock.

About Apple Inc.

Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Watch), and TV boxes (Apple TV), among others. The iPhone makes up the majority of Apple's total revenue. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, AppleCare and Apple Pay, among others. Apple's products run internally developed software and semiconductors, and the firm is well known for its integration of hardware, software and services. Apple's products are distributed online as well as through company-owned stores and third-party retailers. The company generates about 40% of its revenue from the Americas, with the remainder earned internationally.

  • Last Price:
  • Previous Close:
  • Change:
    $-1.41 (-0.73%)
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  • Market Capitalization:
    $886.8 B
  • Day's Range:
    $190.30 - $193.59
  • Dividend Yield:
  • 52-week Range:
    $233 - $142.00
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  • Sector:
  • Industry:
    Consumer Electronics
  • Analyst Average Recommendation:
    Moderate Buy

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