Why Apple’s ‘blowout’ earnings aren’t boosting its stock

Why Apple’s ‘blowout’ earnings aren’t boosting its stock

Apple Inc.'s stock isn't getting much love from investors even after the company delivered what one analyst described as "blowout“ results for its March quarter.

Shares of the smartphone giant were down 0.7% in midday Thursday trading, reversing course after earlier gains of as much as 2.6%, following a fiscal second-quarter report in which Apple

AAPL, -0.53%

easily topped expectations across all of its product categories, with surging demand for the new iPhone and continued strong momentum for the iPad and Mac businesses amid the remote-work boom.

Despite the strong results, there are questions about how long Apple's hot streak can continue. Leaving aside issues like supply constraints, which Apple estimates could have a $3 billion to $4 billion negative revenue impact on its June-quarter results, some analysts have expressed that Apple's booming performance during the pandemic could mean tough comparisons later in the year.

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Bernstein analyst Toni Sacconaghi wrote that "ironically, Apple's Q2 may have been TOO good,“ since the company "will be staring down very difficult [comparisons] in essentially every business in FY 22