Apple?s stock is currently trading at $149.06 a share. Indicators are positive, although MACD is swaying slightly towards a neutral position.
Overview
Apple Inc. is a global American technology firm with headquarters in Cupertino, California. Apple is the world's largest firm by market capitalisation as of June 2022, the fourth-largest personal computer vendor by unit sales, the second-largest producer of mobile phones, and the largest technology business by revenue (totalling US$394.3 billion in 2022). Together with Alphabet, Amazon, Microsoft, and Meta, it is one of the Big Five American tech firms.
Financials
Looking at the financial year ending on the 30th of September 2022 versus 2021. Revenue rose to $394.3bn from $365.8bn and gross profit rose to $170.8bn from $152.8bn. EBITDA went up by $10bn yea-on-year and net income went up by over $5bn, as a result, earnings per share rose to $6.15 from $5.61 in the prior year. However, total assets only rose by $1.7bn whereas total liabilities rose by $15bn. The reason for the much smaller increase in assets is that Apple’s cash-on-hand stockpile fell by $14bn. Due to this, its shareholder equity deprecated to a total of $50.7bn for 2022 from $64.3bn in 2021.
Technicals
From a technical perspective, Apple’s stock is currently trading at $149.06 a share. Towards the upside, resistance sits at $151.18 then at $151.80 then at $152.66. A break above these resistance points could see its share price head towards the $154-$155 price range. On the other hand, towards the downside, support levels sit at $148.56 then at $147.29 then at $146.92. A break below these support levels may see the share price slide toward the $144-$145 price range. Looking at the indicators, MACD is currently positive and so is RSI as it reads 52.
Summary
On the basis of Apple’s financials, the company operates in a very healthy business manner and shows gradual growth year-on-year. It operates at a high-profit margin and its total assets continue to outweigh its total liabilities, which is always a positive for a company. Apple’s shareholder equity did lose a big chunk of its value in 2022 due to the downfall in its cash-on-hand stockpile, however, this is primarily to the current cost-of-living crisis. The company still managed to generate more revenue in 2022 compared to 2021, highlighting its sales and business operations are not slowing down. The minor setback regarding cash on hand, should level out in the long term and continue to grow as the tech sector continue to expand. Based on the technicals, indicators suggest a bullish approach, although traders should be wary as the MACD is swaying towards a neutral stance.
