Tuesday's Market Minute: Previewing Apple Earnings

Apple Inc AAPL reports earnings after the bell on Wednesday, with Zacks estimating EPS at $1.40 and revenue at $102.61B. If Apple beats, or even comes in slightly short, it would mark its first $100B quarter — definitely a milestone. As the 5G smartphone cycle continues to kick off, Apple could continue to benefit, and we could see an all-around great year.

The longer work-from-home continues as well, the longer Apple could benefit from increased demand for personal devices like iPads and Macs. Apple’s stock has been trending upwards since April, and the stock has just about doubled since the pandemic hit, making a new all-time high of $145.09 yesterday.

Apple has also benefitted from its grouping with the tech mega-caps, FANGM, and saw gains after Netflix Inc’s NFLX earnings report this week. Taken altogether, things are looking great.

However, JPMorgan Chase & Co. JPM notes that most investors don’t expect Apple to guide for 2Q, and instead will take the upcoming report as evidence of Apple’s momentum for 2Q and beyond. Will the market get too excited and expect what Apple can’t deliver? Or will Apple keep climbing?

Photo by Laurenz Heymann on Unsplash