It’s funny how option sellers always seem to win in the end. They’re betting that stocks don’t move much and collect hefty premium payouts when they’re right – and as Apple (NASDAQ: AAPL) showed impressive iPhone sales growth in the third quarter of 2022, leaving stock traders hesitant and option sellers laughing all the way to the banks.
As usual, overzealous message board gurus expected Apple stock to go up or down by 10%, 20%, or more after the results. In fact, Apple shares fell less than 1% in after-hours trading, disappointing both bulls and bears.
That said, in a time of high inflation, supply chain disruptions, and turmoil across financial markets, this may not be such terrifying news. If the news isn’t good news, Apple actually performed well despite short-term traders’ high expectations.
The iPhone sold well, but the Mac did well
It might be an exaggeration to say that Apple “made a call” beyond $42.63 billion in iPhone sales in Q3 2022. All in all, this result represents a significant improvement over his $38.87 billion recorded in the same period last year.
But in today’s day and age, a decent result from a giant like Apple isn’t enough for a weary and anxious Wall Street.We all know the iPhone is the product that made Apple famous. At least, people under the age of 30 probably think so.
If you’re old enough, you may remember that Apple first made its bones with an ancient PC called the Macintosh. and is less important to Apple’s revenue and bottom line than the iPhone.
Still, it’s pretty impressive that Apple grew Mac sales from $9.18 billion in Q3 2021 to $11.51 billion in Q3 2022.
What is a fair purchase price for AAPL shares?
AAPL has a strong buy consensus rating based on 23 buys, 4 holds and 0 sells assigned in the last 3 months. An average AAPL share price target of $183.37 implies a 26.48% upside potential.
Bottom line: Apple’s overall results were good, but not amazing
So far, we’ve painted a picture of bad news and good news for Apple’s quarterly results. Looking at the revenue and bottom line growth in Apple’s third quarter report, this decent but unremarkable theme seems to continue.
Here are the data you need to know from the report: Apple’s revenue for the third quarter of 2022 increased 8% year-on-year to his $90.1 billion, slightly above analyst consensus forecasts for his $88.8 billion. Meanwhile, Apple’s net earnings per share came in at $1.29, slightly above Wall Street’s forecast of $1.27.
The veneer of the trading industry’s reaction, then, makes perfect sense. AAPL’s stock could go up and down a lot over time, but for the time being, it looks like thrill-seeking investors will have to wait for Apple’s next world-shaking event.