Apple's stock took a dip after the company unveiled its new lineup of MacBook computers, powered by a new line of high-performance chips, just days before its highly anticipated fourth-quarter earnings report. Priced between $1,299 and $2,499, the new MacBooks are expected to launch over the coming weeks and investors are hoping they'll provide support for Apple's product sales during the holiday quarter.
Apple is also expanding its chip design capabilities with these new MacBooks, with the M3, M3 Pro, and M3 Max chips. The M3 Max chip is particularly interesting as it can be used by AI developers and could be seen as a challenge to Nvidia's early market dominance.
Analysts are looking for Apple to report a fourth-quarter earnings of $1.39 per share, up 7.8% from the previous year, on revenue of $89.28 billion. However, the key focus will be Apple's forecast for the holiday quarter. With reports of weaker than expected sales for the iPhone 15, the sales of the new MacBooks could be crucial in determining Apple's performance in the upcoming months.
Despite the new product announcements, Apple's stock slipped 0.4% to $169.54, pushing it into negative territory for the past six months. Investors will be eagerly awaiting Apple's earnings report to see if the new MacBook lineup can boost sales and bring positive news for the company.
Apple and several chip companies are set to report their earnings next week. Chip companies such as Advanced Micro Devices (AMD), Axcelis Technologies (ACLS), FormFactor (FORM), and Microchip Technology (MCHP) will be joining Apple in sharing their financial results. AMD, in particular, has a strong stock performance with a 47% gain year-to-date and a Relative Strength Rating of 92. Their third-quarter results are expected to meet analysts' targets with sales guidance of $5.7 billion.
As for Apple, they are facing tepid sales from their latest iPhone 15 handsets but might see a boost in their stock ahead of earnings due to a product launch of a new iMac desktop computer featuring the M3 processor chip. The company has also recently raised prices for some of their subscription-based services. Additionally, Apple has seen all-time high service revenue for two consecutive quarters and has crossed an installed base of 2 billion active users. Despite some recent stock challenges, Apple is still expected to release its results on Thursday after the market closes.
Overall, the earnings reports of these tech giants and chip companies will provide insight into the state of the industry and consumer confidence.
Federal agents raided the Brooklyn home of Brianna Suggs, a top fundraiser and campaign consultant to New York City Mayor Eric Adams. The raid came as Adams canceled a series of planned meetings in Washington, including a sit-down with senior White House officials to discuss the migrant crisis. While the target of the investigation is unclear, it is known that Suggs raised money for Adams' election campaign and also lobbied his administration on behalf of a real estate client. The search of Suggs' home was conducted by FBI agents and multiple trips were made into the house, with at least one box being removed. Adams' attorney stated that the mayor was not contacted as part of the inquiry and that the campaign would comply with any inquiries as appropriate. Suggs, who has worked for Adams since 2017, did not respond to a request for comment. The cancellation of Adams' meetings and the raid on Suggs' home have raised questions about the nature of the investigation and its potential implications for the mayor.
