Market Analysis: Apple Stock Plunges 2% Despite Better-than-expected Sales

<img src="https://fxopen.com/blog/en/content/images/2023/08/Apple.jpg" alt="Market Analysis: Apple Stock Plunges 2% Despite Better-than-expected Sales" /><p>Yesterday, after the close of the main trading session on the stock exchange, the largest company by capitalization reported for the quarter.</p><ul><li>AAPL EPS of USD 1.26 (expected $1.195);</li><li> Gross revenue was USD 81.8 billion (as expected);</li><li> The decline in iPhone sales was offset by strong sales in the services segment (which includes Apple TV+) and sales in China, which were up 8% year-on-year.</li></ul><figure><img src="https://lh5.googleusercontent.com/0HJ0gzyNWmjtuyAbcMJe5Hfwcf2JOVcLODO62UqFN_wc4cmopA23UQ7yv6DrJygeKnq9liwfh9yUwH-bxQ7TcrPjBOGliFluw0koJCtZNKji5-sKchVavHkvu_LqKmVD3HBK1R-20fzkTRUm5oNGF7A" alt="Market Analysis: Apple Stock Plunges 2% Despite Better-than-expected Sales" loading="lazy" /></figure><p>However, AAPL&apos;s share price fell in premarket today, probably because market participants are concerned about:</p><ul><li>a forecast for a further decline in iPhone sales;</li><li>vague prospects for the release of a new product Vision Pro;</li><li>Apple&apos;s rising R&amp;D spending reaching USD 22.61 billion a year.<br></li></ul><p>The capitalization of the company fell below USD 3 billion.</p><p>The AAPL stock price chart shows that the price has not reached the psychological level of USD 200, while the market may be supported by:</p><ul><li>the lower limit of the rising channel, within which the price has been moving since the spring of 2023;</li><li>the level of USD 176 per AAPL share – the price repelled from it in June.<br></li></ul><p>The opening of trading is expected at the level of USD 187. According to MarketWatch analysts, the target price for AAPL shares is USD 195.00.</p>