Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, February 21, 2020

Article Excerpt

APPLE INC., $313.05, Nasdaq symbol AAPL, is still a hold. Due to the coronavirus outbreak in China, Apple investors should now expect the company’s revenue in the quarter ending March 31, 2020, to fall short of its earlier forecast of $63.0 billion to $67.0 billion. The outbreak is impacting Apple in two ways. First, the virus has forced the company to close its retail outlets in China. In the quarter ended December 28, 2019, Greater China (which includes Hong Kong and Taiwan) accounted for 15% of Apple’s total sales and 21% of its earnings. Second, the shutdown of Chinese factories will probably hurt the short-term supply of new iPhones. That product still accounts for a high 60% of its sales. The stock moved down slightly this week in response to the warning. However, a further drop is likely if it takes longer than a few weeks for iPhone production and sales to return to normal levels. Apple recent coverage: Hotline for October 4, 2019 …

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