Apple and Palantir retreat in pre-market after releasing earnings
Apple suffers from iPad sales and margin forecast, and Palantir sees profit drop despite beating estimates
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM TIMES BRASIL · 2 MIN
Shares of Apple and Palantir fell in the American pre-market on Tuesday (3), after the release of the results the day before, with the trading session already closed. According to Times Brasil, Apple fell 4.4% and Palantir, 6%. MarketWatch recorded a 4.5% drop for Apple.
In the case of Apple, the balance of the 4th fiscal quarter brought revenue above expectations, according to Times Brasil. What weighed heavily were iPad sales, below analysts' projections, and the profit margin forecast, which disappointed investors. MarketWatch adds that the concern was from the perspective of gross margin and the slowdown in service revenue.
Palantir surpassed Wall Street estimates in the 3rd quarter, according to Times Brasil. One piece of information caught attention: revenue from US commercial clients exceeded, for the first time, revenue from contracts with the US government. Still, MarketWatch points to a slowdown in the growth of commercial contracts in the US, a drop in profits despite the result and hesitation from some Wall Street analysts.
Both cases show that, in the pre-market, higher-than-expected revenue numbers are not enough when the investor looks at margin and growth rate. In companies with high expectations, the market tends to charge the future trajectory, and not just the past quarter.
It is worth remembering that this is a pre-market movement, a trading period with less volume, in which prices tend to fluctuate more. The sources consulted do not say how the actions closed the regular session.
What changes for the investor
The immediate effect is one of sentiment: the drops indicate that the market's reaction depended on the margin, the outlook and the pace of growth, and not just revenue. Those who follow the two stocks should observe the opening of the regular trading session to see if the losses are confirmed and if projections change in the next analysts' statements. Until then, read with caution, because the information available comes from news about the pre-market, not the closing.
Automatically translated from Portuguese.
