Here's Where to Buy Apple After Post-Earnings Selloff
Complete. Here is the key summaryApple shares dropped sharply in after-hours trading despite beating Q2 earnings estimates of $1.89 with $2.02 per share. The selloff was driven by disappointing forward guidance, a downgrade in Q4 revenue growth expectations to 9-11%, and concerns over higher component costs and supply constraints affecting the current quarter.
Apple (AAPL) fell sharply in after-hours trading on Thursday after the company reported second-quarter earnings. The company earned $2.02 per share, versus analysts' estimates of $1.89.
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However, revenues were only slightly above estimates, and the company's forward guidance was disappointing.
Additionally, Apple downgraded its Q4 revenue growth from 12% to a range between 9% and 11%. The company expects to be affected by higher component prices, as well as supply constraints. According to Apple, those supply issues have spilled over into the current quarter.
Apple Success Before Selloff
To understand why Apple experienced a sharp selloff, take a look at the stock's performance leading up to earnings.
On June 26, Apple closed at $275 (point A). That day, we explained why the selling was overdone.