Apple Inc. (NASDAQ:AAPL) pursuing alternative sources of growth
Thanks to concerns about weakening iPhone sales, the Apple stock price shed as much as 39% of its value between early October and the first days of January.
And while shares of Apple Inc. (NASDAQ: AAPL) have recovered a bit since (up 20% from about $142 to about $171), the concerns over the company’s iPhone business hang over the stock like the grim reaper.
But unlike other companies that clung too long to a lucrative but stagnating business model – the Steve Ballmer-era Microsoft Corp. (NASDAQ: MSFT) comes to mind – Apple is already pursuing alternative sources of growth.
And let’s be clear: Apple’s iPhone business isn’t going to dry up and blow away anytime soon. But with the smartphone market nearing saturation, especially the mid- to high-end that Apple targets, the days of monster growth from the iPhone are over.
One strategy Apple has adopted is milking more revenue from its installed base through services such as Apple Music, AppleCare, the App Store, and iCloud. Services revenue has doubled from $18 billion in 2014 to $37 billion in 2018. It’s expected to double again by 2022 to $80.6 billion.
That helps, but according to FactSet, data analysts foresee annual iPhone revenue declining by $26 billion between 2018 and 2020. The company will need another major source of earnings growth to move AAPL stock back to its all-time high of $233.47 and beyond.
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 187.40.
The projected lower bound is: 160.84.
The projected closing price is: 174.12.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 92.0708. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 66.77. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 21 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 154.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 25 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 2.930 at 174.180. Volume was 11% below average (neutral) and Bollinger Bands were 3% narrower than normal.
Open High Low Close Volume___
172.860 175.080 172.350 174.180 36,101,628
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 161.90 162.15 191.41
Volatility: 44 53 39
Volume: 35,201,408 41,915,592 33,851,068
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
APPLE INC gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 9.0% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 7 periods.