Apple (AAPL) Results Preview

Apple Inc (AAPL) is expected to announce second-quarter earnings next Tuesday. Analysts expect $9.94 earnings per share on revenue of $36.48 billion.

Apple stock price increased by about 60% this year touching an all-time high value of $644 on April 10. Investors are afraid that it might have entered into bubble territory and may drop sharply at anytime. The world’s most valuable company is facing growing competition from Google Inc’s Android, legal challenges in many continents and might be overdue for a strong retreat. Many investors are cashing in some holdings and re-evaluating their positions before announcement of second-quarter earnings as there is uncertainty concerning what its next product will look like.

Apple shares dropped 7 percent when the California based firm did not come to Wall Street expectations last October.

Apple, on the back of strong iPad and iPhone sales, has earlier surprised analysts in recent quarters. However any slight disappointment with the figures might weigh heavily on its shares that have risen by four times during last two and a half years.

Main problems for Apple include possible effect gross margins if main contract manufacturer Foxconn passes on enhanced labor costs as well as the lawsuit by the U.S. Justice Department for conspiracy on ebook prices.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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