Uncommon Sight! Apple's Unprecedented "Five Consecutive Dips"! iPhone 15,Holds the Key
$Apple (AAPL.US)$ 's stock price has seen an unusual streak of five consecutive days of decline, with a cumulative decrease of nearly 9%. Overnight, Apple experienced a decline of 1.7%, while in contrast, the Dow Jones Industrial Average rose by 1.2%, making Apple the poorest performer among Dow stocks for the day.
This downward spiral has intensified following the release of Apple's third-quarter financial report. Last Friday, Apple plummeted by 4.8%, causing its market capitalization to dip below $3 trillion, marking the largest single-day decline since September 29th and the first time the stock price has closed below the 50-day moving average since the beginning of the year.
Despite exceeding earnings expectations in the second quarter, Apple's total revenue dropped by 1.4% year-on-year, marking the first consecutive decline over three quarters since 2016. All hardware product lines, except for Mac computers, experienced declines in sales, and iPad revenue took a sharp nosedive of 20%.
Even more prominently, in the most recent fiscal quarter, Apple stands as the only company among its competitors to have experienced two consecutive quarters of revenue decline. Furthermore, the signals conveyed during the earnings call were far from optimistic. Apple executives projected that unless the overall economic outlook deteriorates further, the company's third-quarter performance will be similar to that of the second quarter.
In addition, Apple's lofty valuation has left investors hesitant. Currently, Apple's forward 12-month price-to-earnings ratio stands at 28 times, exceeding the five-year average P/E ratio of 23.2 times and significantly higher than the lowest P/E ratio of 10.8 times.
Reportedly, the iPhone 15 is set to hit the market on September 22nd, and the holiday quarter ending on December 31st will serve as a crucial observation period for demand. The sales performance of the iPhone 15 will significantly impact Apple's future stock trajectory.
For Apple, on one hand, the disruption in the supply chain has offered some advantages, given the lower base of the same period last year. On the other hand, currency fluctuations in major overseas markets could potentially decrease Apple's foreign revenue. This presents both opportunities and challenges for Apple.
Despite exceeding earnings expectations in the second quarter, Apple's total revenue dropped by 1.4% year-on-year, marking the first consecutive decline over three quarters since 2016. All hardware product lines, except for Mac computers, experienced declines in sales, and iPad revenue took a sharp nosedive of 20%.
Even more prominently, in the most recent fiscal quarter, Apple stands as the only company among its competitors to have experienced two consecutive quarters of revenue decline. Furthermore, the signals conveyed during the earnings call were far from optimistic. Apple executives projected that unless the overall economic outlook deteriorates further, the company's third-quarter performance will be similar to that of the second quarter.
In addition, Apple's lofty valuation has left investors hesitant. Currently, Apple's forward 12-month price-to-earnings ratio stands at 28 times, exceeding the five-year average P/E ratio of 23.2 times and significantly higher than the lowest P/E ratio of 10.8 times.
Reportedly, the iPhone 15 is set to hit the market on September 22nd, and the holiday quarter ending on December 31st will serve as a crucial observation period for demand. The sales performance of the iPhone 15 will significantly impact Apple's future stock trajectory.
For Apple, on one hand, the disruption in the supply chain has offered some advantages, given the lower base of the same period last year. On the other hand, currency fluctuations in major overseas markets could potentially decrease Apple's foreign revenue. This presents both opportunities and challenges for Apple.
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