Apple Continues to Consolidate with neutral technical indicators. However, strong support remains below.

With its headquarters in Cupertino, California, Apple Inc. is a multinational American technology company. Apple currently holds the top spot as the largest company in the world by market capitalisation, the fourth-largest seller of personal computers by unit sales, the second-largest manufacturer of mobile phones, and the greatest technology company by revenue (totalling $394.3 billion in 2022). It is one of the Big Five US tech companies, along with Alphabet, Amazon, Microsoft, and Meta. However, unlike some of its peers, the stock only sits 19% below its highs, showing some resilience.

Looking at 2022 revenues have continued to prosper despite recession fears. Total revenue as of the Start of October 2022 was $270.38bn. This could suggest total annual 2022 revenue will be about $375bn accounting for a spike at Christmas time and the release of the new iPhone 14 models. Profit after tax leading up to October 2022 was $65.17bn. Continuing this trend total 2022 profit after tax could be about $90.37bn (24.1% profit margin). Looking at the balance sheet, as you would expect, the numbers are very strong. Total cash on hand as of October 2022 was $48.3bn with total assets amounting to $352.7bn. Total liabilities Sat at $302bn, Which is a drop QoQ and YoY. (82.7% Q2 vs 85.5% Q3). This shows a slight decrease in net postive assets of $7.48bn.

Despite some minor wobbles in the balance sheet the stock continues to hold strong support at $136. A break below $136 could send Apple shares down to the 2022 lows of $129 region. A break below here takes the stock further towards $122, but if this did happen, it would become somewhat obvious when looking at the chart. Towards the upside, initial tough resistance sits at $151 where the monthly swing highs and 100 period SMA sits. RSI is neutral, with MACD looking to turn postive and build up momentum, hence the slight upside skew from a technical point of view.

Overall, Apple continues to hold strong vs its tech peers. Many fundamental aspects come into play given the current economic climate and one of the most prominent is the uproar in china with continuous lockdowns. Is this an issue? - yes, Can it be resolved? - Yes. Apple can easily move Chinese production to other countries pretty fast. Demand for the iPhone in 2023 could slow as users look to cut back, however apple still continues to utilise thier services to ensure that a client lifecycle remains strong. It's also worth noting that warren buffet also purchased 3.9 million shares in Q2 2022, looking at the chart, the shares haven't really moved that much since.