Despite its recent gains, Apple’s (NASDAQ: AAPL) stock trajectory has shown signs of deceleration, notably from its July peak of $197. As the market anticipates Apple’s Q4 earnings report, the onus is on the tech behemoth to address several looming investor concerns.
Remarkably, Apple remained resilient during the economic turbulence of the previous year. However, the story of 2023 paints a different picture: Apple has reported a downturn in revenue for three consecutive quarters, reflecting a broader decline in consumer expenditure. Specifically, Q3 2023 data reveals a 1% YoY revenue drop, with a slump observed in three of its four main product categories.
Yet, amid the market’s recent volatility, Apple’s current price-to-earnings (P/E) ratio stands at 29, offering one of its most enticing valuation levels in the recent quarter.
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While challenges persist in the product segment, Apple’s services arm emerges as a beacon of resilience. This division, which encompasses revenues from the App Store and subscription-driven entities like Apple TV+, Music, and iCloud, has consistently showcased robust growth. Notably, this digital segment has often surpassed revenues from the iPhone, Apple’s flagship earner.
Turning to predictive insights, market analysis platform Finbold has leveraged AI-powered algorithms from CoinCodex to forecast Apple’s year-end valuation which predicts a price of $184 for December 31. Given the transitory nature of economic downturns, Apple remains a promising long-term bet, poised to offer substantial returns in a post-recovery market scenario.
Apple chart analysis
Apple shares closed at $179.80, marking a rise of $1.41 (0.79%) in the past 24 hours. Over the last week, the stock has gained $6.05 (3.48%), and it boasts a commendable year-to-date ascent of 43.76% amounting to $54.73.
Over the past month, AAPL has oscillated between $167.62 and $179.85, presenting a notably broad trading range.
Currently, it’s hovering near the upper limit of this bracket. A significant support zone has been identified between $170.42 and $175.13, shaped by the confluence of several trend lines and pivotal moving averages across various time frames. On the daily chart, a resistance point emerges at $182.68.
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