What Apple earnings could say about the tech sector
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What Apple earnings could say about the tech sector
Jeremy Hobson: Later today we’ll find out how Apple did over the last few months. And given the recent drop in Apple’s stock price, there are questions about whether the company can remain the juggernaut that it’s been.
Marketplace’s Nancy Marshall-Genzer is with us now live to discuss. Good morning.
Nancy Marshall-Genzer: Hey Jeremy.
Hobson: So Nancy, what are we expecting from Apple today?
Marshall-Genzer: Analysts are expecting Apple to report a profit of more than $9 billion — not too shabby. Most of that would be from iPhone sales. But sales of gadgets like iPhones do typically go down after the holidays. And Apple fans may be waiting to buy because they heard an iPhone 5 could come out later this year.
Hobson: Yeah, maybe a possible new iPhone this year and a $9 billion profit, as you say — sounds pretty exciting. Why is Apple’s stock price falling so much, then?
Marshall-Genzer: Yeah. Well first, Jeremy, remember, Apple’s stock is up for the year; at one point it hit $644 a share. But it has fallen more than 13 percent in a little more than a week. That is partly because Mac sales were below estimates. So now, everybody’s going to be watch and see just how many iPhones and iPads Apple sold in the last quarter.
Most analysts do think Apple can stem its losses; they are still bullish on the stock. Tim Bajarin is president of Creative Strategies.
Tim Bajarin: Once Apple shows that their business is still strong, and the iPhone and iPad is gaining strength, those numbers will go back up.
And Jeremy, investors really could use some reassuring news right now. We got some disappointing earnings news yesterday from Netflix; and Facebook isn’t public yet, of course, but it did report its net income fell 12 percent in the first quarter. So some people are concerned about a tech slowdown.
Hobson: Marketplace’s Nancy Marshall-Genzer, thanks Nancy.
Marshall-Genzer: You’re welcome.
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