Shares & Derivatives
3 Reasons Why You Should Not Be Worried About Apple’s 3Q Guidance
By The Smart Investor  •  May 12, 2022
In Apple’s (NASDAQ: AAPL) 2Q2022 release, we saw Apple CEO Tim Cook giving guidance for 3Q2022 that didn’t make Wall Street very happy. Cook revealed that supply chain constraints pertaining to COVID-driven plant shutdowns in the Shanghai area, along with industry component shortages, are expected to result in a substantial drag of US$4 billion to US$8 billion for fiscal 2022’s third quarter (3Q2022). Also, with mounting inflationary pressures, Apple’s gross margin forecast of 42-43% implies that there may be a year on year margin contraction compared to the 43.3% in 3Q2021. Investors of this blue-chip technology stock may wonder if this piece of news should get you worried. But if you hold a long term view of the business, here are three reasons why you should not. 1. Demand for Apple’s products remains high Remember that we are living in unusual times, with occurrences such asCOVID-19 and Russia’s invasion of Ukraine over the last two years....
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By The Smart Investor
The Smart Investor is co-founded by David Kuo, Joanna Sng, and Chin Hui Leong. The company was formed in late 2019 from the ashes of the Motley Fool Singapore. The Smart Investor believes that everybody can learn how to invest, smartly. We aim to educate people on how to invest smartly by providing investing education, stock commentary and market coverage for Singapore and around the world.

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