This information has been prepared by IG, a trading name of IG Australia Pty Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
US stocks plummeted on Monday, after Apple Inc and Goldman Sachs Group dragged down Wall street on Monday morning.
Apple shares fell 5% as suppliers’ shares also dropped. Apple Inc Shares fell to their lowest in more than three months. It comes after suppliers issued a warning on results that point to a future predicted fall in iPhone sales.
Lementum shares dropped 33%, Circus Logic Inc, Qorvo Inc and Skyworks Solutions Inc dropped as well, affecting the tech-heavy Nasdaq which fell 2%.
Lumentum Holdings Inc components power the iPhone’s Face ID technology, but Lumentum's chips are not used in phones older than last year's iPhone X.
Analysts have previously warned of a fall in shares, considering increasing iPhone launches, with heftier price tags.
Apple had warned earlier this month that holiday sales would miss Wall Street expectations this year, due to the weakness in emerging markets.
Lumentum Holdings Inc, cut $70 million off its forecasts for revenue knocking another 5% or $50 billion, off Apple's value in morning trade on Wall Street.
Apple’s earnings report
Earlier this month, Apple delivered underwhelming Q4 earnings report, where the company’s stocks began to fall.
Apple’s earnings per share (EPS) were recorded at $2.91 per share, while they dropped they still exceeded the $2.78 expected by stock analysts. The company’s Q4 revenue rose to $62.9 billion, also surpassing the projected $61.57 billion.
Apple’s 2019 first quarter outlook has also got investors wary, as the company expects revenue to be $87 billion, less the projected $93 billion by analysts.
.jpg)
