Apple CEO Tim Cook visits the Apple Fifth Avenue store for the discharge of the Apple iPhone 14, Latest York City, September 16, 2022.
Andrew Kelly | Reuters
Apple stock rose 7.5% on Friday, a day after it reported September quarter earnings that modestly beat expectations on revenue and profit and showed global demand for its premium hardware stays high.
It was the most effective day for Apple shares since April 2020.
The surge comes after a mixed week of Big Tech earnings, during which Meta and Alphabet showed signs of weakness attributable to macroeconomic conditions hurting the digital ad market. Alphabet rose about 4.4% and Meta was up about 1% on Friday. Each took big hits earlier within the week.
Amazon fell 6.8% on Friday after giving weak guidance for the vacation quarter.
Although Apple signaled some slowing growth in the present quarter, and weakness in its profitable services business, analysts were generally positive concerning the company’s results.
Apple grew sales by 8% in the course of the September quarter, keeping its Covid pandemic quarterly growth streak alive.
The corporate’s Mac business grew 25% whilst PC sales from other brands from world wide fell.
And Apple signaled that demand for premium computers and phones stays strong.
While Apple’s results weren’t much stronger than what Wall Street expected, the corporate increasingly looks like a refuge for investors searching for quality stocks to weather a possible recession as rates of interest rise.
“Sometimes in-line results are most enjoyable,” wrote JPMorgan analyst Samik Chatterjee in a note Friday.
He said the resilience in Apple’s quarter was noteworthy because the corporate continues to grow sales even against tough macroeconomic aspects like a powerful dollar, all while keeping its margins high.
