5 Biggest Earnings Season Losers: Tesla's Margins Drop, Apple's Sales Disappoint
In sharp contrast to last week’s article, in which I highlighted the five biggest earnings season winners on Wall Street, this week I will take a look at five of the biggest losers as the dust settles on the Q2 reporting season.
Using the InvestingPro stock screener, I also examined the potential upside and downside for each name based on their Investing Pro ‘Fair Value’ models.
Without further ado, let's dig in!
Apple (NASDAQ:AAPL) delivered its third consecutive quarter of declining annual revenue when it released its fiscal Q3 update on August 3 as disappointing sales of the company’s iPhones and iPads offset a strong performance from its services business.
Furthermore, the consumer electronics giant warned that the sales slump would continue into the fiscal fourth quarter ending in September, reflecting waning growth in the smartphone market.
On Apple’s earnings call, CEO Tim Cook said the company continued to see an “uneven macroeconomic environment.”
AAPL stock tumbled 5.5% in response to the downbeat results and weak outlook to suffer its first negative earnings-day reaction since FQ3 2021.
The Cupertino, California-based tech conglomerate has seen sales of its flagship iPhone device decline amid the challenging operating environment that has weighed on demand for its pricey smartphone models.
Meanwhile, Apple’s next big product release — the Vision Pro mixed-reality headset announced in June — is only scheduled to debut in early 2024.
Shares are up 33.9% in 2023, outperforming the broader market by a wide margin over the same period amid the year-to-date rally in mega-cap tech stocks.
Source: InvestingPro
While Apple remains a favorite amongst Wall Street analysts, shares appear to be somewhat overvalued, as per
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