Apple stock slumped more than 9% at the open Friday, dropping to $304 after the company issued cautious guidance that dampened enthusiasm from its record June quarter.
The tech giant posted $109.42 billion in revenue for the June quarter, beating expectations by nearly $1 billion. Earnings per share came in at $2.02, well above the $1.89 consensus. iPhone sales surged 22% to $54.25 billion, and Mac sales jumped 29%, setting new highs. Yet, Services revenue and sales in Greater China fell short of forecasts, hinting at underlying challenges.
Apple’s CFO Kevan Parekh warned of supply chain issues, currency headwinds, and increased memory costs linked to AI demand for critical chips, projecting revenue growth between 9% and 11% for the September quarter below analysts’ 12% target. This outlook triggered a sharp sell-off despite the recent milestone where Apple briefly hit a $5 trillion market cap.
Technical Support and Resistance in Play
Before the earnings hit, Apple shares hovered near all-time highs, supported by a $333 price zone that had flipped from resistance to support. The Relative Strength Index remained at 62, signaling positive momentum, and trading volume had increased, fueling optimism.
Now, the $280 mark stands as the next critical support level, having previously capped declines in February and early July. If the stock can bounce back above $315 soon, it could keep its upward trend alive and aim to retake the $344.57 record high. Failure to do so might open the door to a deeper pullback, marking the largest correction since early July.
John Ternus, who steps in as CEO next month, highlighted AI as a major growth opportunity, suggesting that Apple’s future might hinge on how well it navigates this technology wave despite current market jitters.
This content is for informational purposes and does not constitute financial advice.
