Justin Sullivan
Apple Inc. (NASDAQ: AAPL) revealed a complex monetary outlook with modest expansion and some setbacks in the fourth quarter of 2023. The quarter ended with a slight drop in earnings compared to last year, but was marked by significant construction. in profits consistent with participation. The arrival of the new iPhone series and eco-friendly Apple Watch models reflects the company’s commitment to carbon neutrality through 2030. This article expands on the discussion of the previous article, focusing on the effects of the fourth quarter of 2023 and providing technical research for long-term trends. Notably, inventory is trading at the highest levels lately. It looks set to see a significant rebound in 2024, supported by the progression of an uptrend in prices.
Apple’s financial functionality for the fourth quarter of 2023 shows steady growth and minor setbacks. The company reported quarterly profit of $89. 5 billion, a slight drop of 1% from a year earlier. However, diluted earnings consistent with the constant percentage increased significantly, rising 13% year-over-year to $1. 46. CEO Tim Cook highlighted the company’s accomplishments, highlighting a record profit in iPhone sales in the fourth quarter of 2023 and an industry record.
Apple’s product lineup, including the iPhone 15 series and the first carbon-neutral Apple Watch models, positions the company strongly for the upcoming holiday season. These developments align with Apple’s goal of achieving carbon neutrality for all its products by 2030. The chart below showcases the quarterly revenue numbers. It presents a slight year-over-year decrease in revenue in Q4, yet the overall trend is still upward. Conversely, the annual revenue in 2023 stood at $383.29, a slight dip from the $394.33 in 2022. Nonetheless, the consistent long-term growth in annual revenue highlights Apple’s future profit potential.
Data via YCharts
Luca Maestri, Apple’s chief financial officer, highlighted the expansion of the company’s active installed base of devices, which reached new heights across product categories and geographies. This expansion reflects the strength of the Apple ecosystem and the loyalty of its customers. The company also announced significant monetary activities, adding double-digit earnings consistent with percentage expansion and a very extensive $25 billion return to shareholders, while continuing to invest in long-term development.
The Board of Directors declared a cash dividend of $0. 24 consistent with the stock, reflecting Apple’s continued commitment to creating price for its shareholders. In addition, the net source of revenue recorded an overall quarterly increase. The net source of revenue increased from $20. 72 billion in the fourth quarter of 2022 to $22. 96 billion in the fourth quarter of 2023. However, the annual net source of revenue decreased from $99. 80 billion to $97 billion. Similarly, the steady revenue stream in the fourth quarter of 2023 saw a year-over-year increase. However, the annual profit registered a slight decrease.
Data by YCharts
Total operating expenses for the fourth quarter of 2023 and for the full year saw a slight increase, driven primarily by higher R&D expenses, indicating a strategy in R&D investments. At the same time, the provision for taxes on the source of income increased year after year. year in the fourth quarter of 2023.
Overall, Apple’s monetary effects for the fourth quarter of 2023 show a combination of physically powerful expansion and minor challenges. Despite a slight drop in turnover and annual operating profit, the company’s strategic investments, specifically in research and development, lay the foundation for its long-term success. This, coupled with strong product functionality and an unwavering commitment to shareholder value, positions Apple favorably as it advances its sustainability goals and continues to innovate in the generation sector.
The previous article looked at the long-term technical trajectory of Apple stock, on yearly and quarterly charts. The article notes that 2016 saw the start of a significant uptrend, propelling stocks to all-time highs. Most of this price increase occurred in 2019. 2020 and 2021, with 2022 being an “inside bar” candle. Breaking this inside bar in 2023 has triggered a new uptrend in the market. Moreover, the quarterly charts highlight this bullish momentum with immediate reversal patterns amid a physically powerful wave. parabolic motion.
The latest uptick in Apple’s stock began in 2023, first noted when the stock reached the 38.2% Fibonacci retracement level. This rebound also originated from a solid base at the bull flag support. The successful breach of the bull flag and subsequent support found after the breakout suggests a continued rally, overcoming formidable resistance. Given these solid bullish indicators across various time frames, the stock was anticipated to maintain its upward trajectory.
Apple’s stock price has rebounded from its support level at the bull flag pattern at $165.45, experiencing a significant upward surge. The monthly candlestick patterns for November and December 2023 suggest that the year will end on a high note, potentially forming a bullish yearly candlestick on the chart. This development would confirm a breakout from the inside bar candle of 2022, signaling a robust bullish trend for 2024. This rally commenced from the 38.2% Fibonacci retracement level, which stretches from the 2019 low of $34.03 to the January 2022 peak of $180.65. The breakout from the 2022 inside bar, coupled with a year-end close at elevated levels, is expected to trigger a significant upward momentum in the market. Although Apple has shown robust price performance, its RSI still falls short of overbought territory, indicating potential for additional price growth.
Apple Monthly Chart (stockcharts. com)
This positive outlook gains credibility from the weekly chart below, which features a double bottom setup forged with lows of $127. 77 and $123. 48. The successful breakout above the neckline of this formation, followed by a subsequent pullback and rebound, suggests a physically powerful stock. momentum and the prospect of a significant rebound. Over the past few weeks, strong weekly candles highlight the likelihood that price is preparing for an upward breakout of this area.
AAPL Weekly Chart (stockcharts.com)
The short-term daily chart below offers an in-depth view of the price movements at this specific breakout point. It showcases a triangle pattern delineated by the red dotted trend lines, with the lower points highlighted at $171.73, $167.40, and $165.45. The pronounced price reversal followed by a breakout from this triangle pattern signals robust price dynamics, suggesting a readiness for the price to continue its upward trajectory.
AAPL daily chart (stockcharts. com)
Based on the above analysis, it is evident that although Apple shares are trading at the highest levels lately, they can still be a valuable investment opportunity for investors looking to expand their portfolios in anticipation of the next bull run. shown on the monthly charts and a strong close in 2023 following the breakout of the inside bar in 2022 recommend a conceivable improvement in the market in 2024.
Despite Apple’s impressive currency effects and strong market positioning, the company is not immune to broader economic and industrial risks. The global economic outlook remains uncertain, with inflation, emerging interest rates, and geopolitical tensions potentially impacting customer spending and disrupting global supply chains. In addition, the generation sector is highly competitive and evolving. Apple is facing an intense festival from tech giants and emerging players, especially in smartphones, wearables and services. reaction to customer preferences, which can be unpredictable.
While Apple’s financial performance has been robust, operational risks could affect its future earnings. The slight decrease in quarterly revenue and the fluctuations in operating income highlight the company’s susceptibility to market dynamics. Increases in operating expenses, driven by research and development, could impact profit margins if not matched by proportional revenue growth. Furthermore, Apple’s ambitious goal of achieving carbon neutrality by 2030 poses challenges and costs.
From a technical perspective, Apple stock is showing strong bullish trends but is trading at the highest levels, suggesting the possibility of a market correction. A price drop below $123. 48 would counteract the existing uptrend and could potentially generate additional bearish momentum in the market. .
In conclusion, Apple’s financial results for Q4 2023 paint a picture of a company navigating a complex economic terrain with both resilience and challenges. Despite a slight dip in annual revenue and a fluctuation in operating income, Apple has demonstrated a capacity for robust growth, as evidenced by a record-breaking quarter for iPhone sales and firm performance in the Services sector. The company’s strategic investment in research and development and its commitment to sustainability, particularly in achieving carbon neutrality by 2030, underscore its long-term vision.
From a technical research perspective, Apple stock appears poised for significant expansion in 2024. The bullish momentum indicated through the breakout of the 2022 inside bar and the successful bounce of the bull flag pattern, coupled with a strong year-end close, recommend a continuation of the uptrend inventory upward trajectory. This optimism is supported by fixed price action, adding a solid double bottom setup and a breakout of a triangle. The hard final December 2023 price is set to surpass the 2022 domestic mark, paving the way for a significant price increase in 2024. Investors would possibly need to expand their positions in anticipation of this impending bull run.
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