Shares of Apple (AAPL) fell -0.3% in October, the third consecutive monthly decline and the longest such streak in more than a year. Apple is down -11% from a record high in July as tepid sales in China for its new iPhone models have fueled concerns about the stock’s pricey valuation. Apple will report quarterly earnings results after today’s close, and analysts expect revenue to fall -1% from the year-ago period. That would be the fourth consecutive quarter of falling revenue, the worst run since 2001.
Headwinds for Apple’s earnings have increased since it reported earnings last quarter. The rise in interest rates, tepid growth trends, a high multiple, and demand concerns for its products in China have all weighed on the stock. Baird said, “Given its China and consumer exposure, the setup for Apple certainly seems tougher this quarter. If earnings disappoint, that will carry a lot of weight for how people view the economy at large going into the end of the year.”
