Please disable Ad Blocker before you can visit the website !!!

Apple Long

by SignalFactory   ·  January 28, 2020 | 07:49:38 UTC  

Apple Long

by SignalFactory   ·  January 28, 2020 | 07:49:38 UTC  

Apple is set to report fiscal first-quarter results on Tuesday after the closing bell, and it’s a critical report for the company. Apple’s fiscal first-quarter covers the holiday shopping season and is the company’s biggest quarter in terms of revenue.

This will be the first full quarter with iPhone 11 sales, so analysts and investors will watch closely to see how well the newest models, launched in September, are doing in the market. Apple’s iPhone remains its biggest product and a subject of considerable investor interest. But attention will also be focused on AirPods if Apple’s services are showing up in the accounting, and demand in China.

Apple shares are up over 3% in 2020 so far, and up over 100% since it reported first-quarter earnings in 2019. Apple’s rise in recent weeks has led to a slew of analysts revising their price targets higher as the share price climbs.

Analysts are expecting earnings per share of $4.55, up from $4.18 per share from a year ago, according to Refinitiv. Revenue is expected to be $88.5 billion, up year-over-year from $84.3 billion.

But Apple shares tend to move on forward guidance during earnings reports. Analysts project $62 billion in sales and earnings per share of $2.82, according to a survey by Refinitiv. A shortfall in those areas could send shares lower.

Beyond the numbers, here are some more subtle things investors will be watching out for:


Just over a year ago, Apple CEO Tim Cook was addressing investors about weakness in China that led to an unusual revenue forecast warning.

Since then, Apple shares have been on a tear. Plus, Apple dodged tariffs on the iPhone in December after the U.S. and China struck a “phase-one” trade deal.

But there are still concerns over Apple’s exposure to China, which accounted for 16.7% of its revenue in the last four quarters, and where it manufactures the majority of its products. Stocks dropped on Monday over fears that the deadly coronavirus could hurt sales in China after some regional governments restricted travel.

“Apple is potentially losing out on sales during an important holiday period. While there are only closures in certain cities/regions, traffic footfall in the retail stores is likely to be lower,” J.P. Morgan analyst Samik Chatterjee wrote in a Monday note.

While Apple’s earnings won’t be affected by the coronavirus outbreak, which was first reported on Dec. 31, any commentary that CEO Tim Cook provides on the situation in China will be closely watched.

Apple TV+

Apple TV+ is a streaming service stocked with Apple-backed TV shows, documentaries, and movies. Its list price is $4.99 per month, but Apple is bundling a free year with most of its gadgets.

In September, Hall wrote that the way that Apple accounts for Apple TV+ might result in lower gross margins and profits. Apple responded to the Goldman note at the time, saying that it does “not expect the introduction of Apple TV+ … to have a material impact on our financial results.”

Apple reportedly held preliminary acquisition talks with MGM

In efforts to build out its fledgling Apple TV+ streaming service with original programming and exclusive content, Apple recently agreed to discuss a potential acquisition of media titan MGM, according to a report on Sunday.


For the past two quarters, Apple executives have called attention to its wearables business, which includes Beats headphones, Apple Watch and AirPods.

Apple doesn’t split it out separately — it’s lumped into “Wearables, Home and Accessories,” which includes products like iPod touch, HomePods, and third-party accessories sold by Apple. Nonetheless, analysts will be watching it closely.

“Potential upside to F1Q is most likely to come from Wearables, in our view,” wrote Morgan Stanley analyst Katy Huberty.

For much of the December, Apple’s high-end AirPods Pro was hard to find, suggesting big demand or limited supply.

In December, Citi analyst Jim Suva estimated that Apple could surpass $10 billion of quarterly wearables sales in the quarter.

“We believe the consensus is underappreciating the Apple Watch and Apple AirPods demand strength,” Suva wrote.

However, Hall, the Goldman analyst, believes that investors are already expecting a big quarter from the segment.

“We expect wearables, including both Airpods and Watch, to be positive headline generators, but we believe the consensus is already baking in strong numbers in Other Products,” Hall wrote.

Apple Long (Buy)

ENTER AT: 313.25

T.P_1: 320.75

T.P_2: 330

S.L: 301.80

All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user. This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use. Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered. While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all. All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information. All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way. The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions. Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company. Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results. Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.

Signal Factory is now on Telegram

make sure to join our Telegram channel now and you will not miss any update