Apple's iPhone business grows, but shares fall; memory and services weigh
Demand remains strong, but the memory crisis has worsened and services have slowed, according to MarketWatch.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MARKETWATCH · 1 MIN
Apple's iPhone business continues to grow, but the company's shares have declined anyway. The mismatch draws the attention of those who follow the Nasdaq and ask for a reading beyond the sales headline.
According to MarketWatch, demand for iPhone remains strong, and this data, alone, tends to support optimism about the company. The report points out, however, other factors that weigh in the opposite direction.
Two of them stand out. The first is the worsening of the memory crisis, described by the report as a problem that has intensified. The second is the slowdown in the services business. Together, these points help to understand why a good moment in device sales does not, in itself, guarantee a rise in the stock market.
The drop is not exclusive to Apple. In the list of stocks falling today, Investing.com mentions Intel, Cardinal Energy and Canadian Natural Resources, but the available material does not provide the reason for the decline of any of them.
What changes for the investor
For the investor, Apple's case reinforces that the market looks at the margin and the composition of revenue, not just the volume sold. If the memory crisis persists and services continue to slow down, the pressure on results could be the point to monitor in the next balance sheets. This analysis does not predict prices: the useful reading is to separate what is demand from what is cost and which line of business drives the result.
Automatically translated from Portuguese.
