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Apple stock price falls after blowout earnings: Here’s why

The Apple stock price ended lower yesterday despite smashing Wall Street’s expectations. Has the global micro-chip shortage claimed its next victim in AAPL?

Apple stock closed at $146.77, down $2.22 (-1.49%)

Apple Inc’s (NASDAQ: AAPLE) fiscal third-quarter earnings beat analyst expectations on almost every metric.

Sales were up 36% from the same quarter last year, and iPhone sales increased by a staggering 50% on an annual basis.

  • EPS: $1.30 per share vs expected $1.01
  • Revenue: $81.41 billion vs estimated $73.30 billion.
  • Gross Margin: 43.3% vs 41.9% forecast.

Although, whilst the headline data was impressive, the Apple share price fell after Apple CEO Tim Cook warned analysts the global semi-conductor shortage may provide headwinds for iPhone and iPad sales in the remaining three months of the year.

Only yesterday, AAPL looked set to finally set to clear the 15th of July’s $150.00, all-time high. However, after reaching $149.83 on Monday, the stock has reversed sharply lower. And furthermore, the Apple share price is slated to open even lower in today’s trading session.

AAPL price forecast

The daily chart shows Apple has been trading in a broad ascending parralel channel for the last year

Additionally, a clear level of horizontal resistance has formed at $150.00. This should be considered the first significant support ahead of the top end of the rising channel at $155.00.

If the stock manages to clear both $150, and $155.00 it will enter new territory on the upside. And considering the pedigree of the company, at some stage this is likely.

However, the current momentum is negative and may result in a near-term correction.

The first downside target is $135.00, where the 50-Day moving average at $134.60, aligns with a series of highs from April. Therefore, even though Apple will remain a market-leading brand for some time to come, investors may soon get the chance to buy the stock at a discount.

Apple stock price chart (Daily)

Apple stock price

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