CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Apple share price: what now as Q4 earnings beat estimates?

Apple ended its financial year on a high, beating analysts’ earnings estimates and increasing sales by 2%, sending its shares higher. But can the stock make further gains?

Apple Source: Bloomberg

Last month, Apple announced its financial results for its fourth quarter ending on September 28, with the company recording $64 billion in revenue, up 2% compared to the same period last year.

The tech giant also saw its quarterly earnings climb 4% to $3.03 a share, driven primarily by international sales, which accounted for 60% of total revenue in the period.

‘We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fuelled by accelerating growth from Services, Wearables and iPad,’ Apple CEO Tim Cook said.

‘With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best lineup of products and services ever, we’re very optimistic about what the holiday quarter has in store.’

Looking to trade Apple and other tech stocks? Open a live or demo account with IG.

Analysts upbeat about Apple’s price trajectory

Forecasters are upbeat about Apple’s share price. Based on 36 analysts the average price target for the stock is $249.72, with a high estimate of $300 and a low of $150 a share, according to TipRanks.

As it stands, Apple’s shares closed at $257.50 on Tuesday, so well within the average price guidance that analysts expected. But could the shares rally near $300 levels? Well, the managing director of Morgan Stanley Katy Huberty is certainly optimistic about Apple’s price trajectory.

‘We believe Apple remains under-owned by investors despite the 15% gain since last reporting earnings and therefore if Apple is able to post in-line September-quarter results and December-quarter guidance then the stock can sustain momentum into year-end, barring any major shocks to global markets,’ she wrote in a note.

‘Ultimately investors appear to be owning the stock for the coming 5G iPhone cycle and ramping new services so even in the scenario of light December-quarter guidance, we expect inflows to the name in early 2020 as Apple’s multiple typically expands in the nine to 12 months ahead of major product cycles.’

You can go long or short Apple with IG using derivatives like CFDs.

Apple sets Q1 2020 targets

Apple certainly is looking to drive its share price higher, unveiling an ambitious guidance for its fiscal 2020 first quarter:

  • revenue between $85.5 billion and $89.5 billion

  • gross margin between 37.5% and 38.5%

  • operating expenses between $9.6 billion and $9.8 billion

  • other income/(expense) of $200 million

  • tax rate of approximately 16.5%

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.