Top News

Apple stock in focus as CEO Tim Cook spooks with one phrase


S&P 500




Dow 30








Russell 2000




Crude Oil
















10-Yr Bond
















CMC Crypto 200




FTSE 100




Nikkei 225




Apple (AAPL) CEO Tim Cook and his righthand CFO Luca Maestri channeled their inner Wall Street economist on the tech giant’s earnings call late Thursday.

After a rare earnings miss for Apple, Cook and Maestri used some variation of the phrase “challenging economy” seven times on the earnings call. Both are unusual for the mighty Apple.

“The macroeconomic environment this past quarter markedly was more challenging than 12 months ago,” Maestri told analysts.

Shares of Apple — which fell substantially in pre-market trading on Friday — nevertheless rallied on Friday.

The economic challenges to which Cook referred could be seen in Apple’s earnings.

Revenue: $117.1 billion versus $121.1 billion expected

Adj. earnings per share: $1.88 versus $1.94 expected

iPhone revenue: $65.7 billion versus $68.3 billion expected

Mac revenue: $7.7 billion versus $9.72 billion expected

iPad revenue: $9.4 billion versus $7.7 billion expected

Wearables: $13.4 billion versus $15.3 billion expected

Services: $20.7 billion versus $20.4 billion expected

Wins: 1) China demand appears to be gaining steam; 2) $50 billion plus in cash on the books; 3) Supply constraints have pretty much ended.

Misses: 1) No March quarter revenue guidance again; 2) Executive tone negative on the economy; 3) Weak wearables sales due to economic conditions.

This content is not available due to your privacy preferences.

Update your settings here to see it.

Despite the rare miss and cautious tone from Cook & Co., the bulls on the Street are standing pat on the stock.

The collective vibe is that everyone knew the quarter was going to be soft as the China economy slowly reopens and U.S. consumers spent more cautiously. In turn, Apple’s latest quarter may be as bad as it gets fundamentally for the iPhone and Mac maker this year.

Or so the bulls are betting.

“Bears will be quick to point out negative sales growth but we note when adjusting for FX that sales and outlook are flat, which is materially better than other consumer electronic companies. Importantly services are also outperforming and Apple’s installed base continues to grow (over 2 billion active Apple devices and iPhone installed base estimated at 1.2+ billion),” Citi analyst Jim Suva said in a note to clients.

Suva — who will be on Yahoo Finance Live on Friday discussing Apple — left his buy rating on the stock.

Apple CEO Tim Cook presents the new iPhone 14 at an Apple event at their headquarters in Cupertino, California, U.S. September 7, 2022. REUTERS/Carlos Barria

Yahoo Finance’s Dan Howley contributed to this story.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

Click here for the latest trending stock tickers of the Yahoo Finance platform

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for Apple or Android

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube


Maker of $555,000 Flying Motorbikes to Begin Trading in US

Previous article

The Fed raised interest rates this week. So here’s what you should be earning on your savings account now

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Top News