Today after the market close, the last of the major FAANG stocks, Apple (AAPL), is going to report earnings. Last quarter, AAPL missed estimates on almost every line item, as larger macroeconomic forces caused slowing sales in iPhones, Macs, iPads, and more. This quarter, I anticipate more of the same, as the broader economy has continued slowing.
But, I will point out, that in spite of these metrics, Apple is currently trading less than 10% off of previous, all-time highs!
Check out my Hot Zone stats below. As you’ll notice, even though AAPL missed EPS estimates last quarter, and gapped down, they still rallied into earnings, and then again post-earnings for the remainder of the quarter. Today, AAPL is down post-Fed, but overall, it’s still in a very nice bullish trend, with a daily squeeze!
On Monday, I stopped by TraderTV Live to discuss this, and more. Check out the video below:
AMD & QCOM – A Follow-Up
Since then, AMD has reported earnings, along with Qualcomm. While AMD beat estimates, warnings of slowing momentum initially brought a gap down of -7.1%, or $-6.37. This was the biggest move that AMD stock has seen over an earnings report since October of 2018! Personally, I think this move was pretty exaggerated and overblown, especially given the EPS beat AMD noted, in spite of slowing macroeconomic conditions. I had bought stock prior to the report, and sold put credit spreads in addition to iron condors at the $90 strike. These trades were initially displaying losses, but AMD has already recovered.
While AMD initially gapped lower, today, as of this writing, AMD is already back up to $89.32, and up 9.56%, after announcing an AI partnership with Microsoft. I love it when I see a stock I’m bullish on fall on earnings, and then immediately rise thereafter. This is very bullish! On the plus side, my earnings trades will end up as profitable, instead of being losses.
In either case, I am still buying and holding the stock long-term. I can’t imagine a better partnership than Microsoft and AMD!
As far as QCOM is concerned, the company beat EPS estimates just like it has the past several quarters in a row, but investors still were not impressed, and the stock fell -7.8%. It’s not ideal when I’m right on an EPS beat, but yet the stock trades lower; however, it happens. In this instance, I didn’t have any options trades on, but I still own the stock. The drop is not ideal, but it’s still holding the Nov ’22 low. If it breaks that zone (below $100-102) at that point, I am really wrong! As for now, I’m still holding this stock.
On a short-term basis, AMD just needs to get above $90 and stay there for more upside. It already spiked up there today, but let’s see if we can get continuation tomorrow.