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The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Apple (AAPL) Releases First Quarter Earnings

Apple releases its first-quarter earnings after the market closes on Thursday in the US.

Companies like Meta Platforms have led to bullish excitement for analysts, and traders can look to the resistance levels in Apple in the event of solid earnings.

AAPL – Daily  Chart

AAPL – Weekly Chart

AAPL stock has resistance at the $157.50 and $164.25 levels. Traders should focus on these as intraday targets on Friday and use them as a springboard for further gains if the stock exceeds them.

Apple’s announcement will follow a string of tech earnings from the likes of Snap and Microsoft, which have warned of slowing sales. However, better-than-expected outlooks are boosting stock prices, with Meta seeing a 20% rally despite missed earnings. 

Analysts surveyed by Bloomberg expect little difference from Apple as they expect its first year-over-year earnings decline since 2019. The last time Apple saw a decline in earnings, it was blamed on stagnating smartphone sales. This time analysts suspect the decline results from lockdowns in China and falling smartphone demand amid high inflation. 

According to IDC, iPhone shipments were 14.9% lower year-over-year, from 85 million units in Q4 2021 to 72.3 million in Q4 2022. Apple struggled with its supply thanks to the pandemic lockdowns at Foxconn’s plant in Zhengzhou, China. 

However, analysts are not only seeing supply pressure, as Bank of America’s Wamsi Mohan wrote recently. 

“We view the first half of 2023 as challenged given a somewhat weaker iPhone cycle (both supply and demand issues) and the second half will depend on the next iPhone cycle and contribution from AR/VR,” he wrote. 

If Apple’s iPhone sales show weakness, it could cloud the tech sector after the recent bullishness created by Tesla and Meta Platforms. A strong report from Apple could see an extended tech rally over February.

Last Updated: 03/02/2023

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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