Coronavirus takes its toll on Apple, but remains strong
There are many people who have the dream of Apple plummeting, and they end up sinking and have seen an opportunity in this coronavirus crisis. There have also been many analysts who have stated, taking as reference to their own sources, that Apple’s accounts do not go through a good time by COVID-19 and this has been confirmed by the company itself.
Apple has wanted be totally transparent with your investors and they have recently released a note, clearly explaining that the production of their products is being affected. This will cause as a side effect that revenue forecasts that were marked for Q2 2020 are not met.
Obviously this is not good news for investors but since Apple they have made the most correct decision by not hiding it. After the release of the note we saw how the company fell slightly in stock almost 2%, but in reality it could have been much worse. Now the investors themselves have wanted to respond to Apple by stating that this is a temporary crisis, and that it does not affect the internal structure of the Cupertino company.
Since JPMorgan have described the problem as ‘Winds against storms’. The specific note reads as follows:
The influence of the virus on China’s global demand and supply will drive “much lower” volumes in the second quarter and will even extend to the third quarter of 2020, but the company’s long-term outlook has not yet changed.
Wedbush It also remains quite optimistic. Apparently these are simple temporary problems that does not affect the uptrend which they forecast for Apple months ago. We must also remember that the income problems we will see in the Asian market and surely in the rest of the markets we will see an upward trend as it has been marked.
Since Canaccord Genuity They wanted to call attention to the category of services that are still on the right track. Specifically, we read the following in their statement:
Record revenues for its Services business are expected to “exceed the company’s total growth,” and Mac and iPad sales are reaching their record highs despite relatively high bars to eliminate. The diversified combination of revenue from Apple products and services, along with the expected increases to share repurchases, will prevent stocks from falling too much as the coronavirus storm weathers.
It is for all this that those people who want to see Apple sunk economically will be left wanting. Also here we focus a lot on Apple, how could it be otherwise, but There are many companies that will see the effect of COVID-19 on their quarterly accounts.
And you, do you think analysts should be worried about the company’s results?