Hey Traders,

Apple's Q4 earnings are upon us!

At 4:30pm, the tech titan reveals its numbers, adding to the batch of Magnificent 7 reports.

So far we've seen mixed results from Microsoft, Meta, and Tesla.

Here's the essentials:

Recent Stock Performance - Apple's stock has shown impressive resilience, bouncing back nearly 10% from it's 2025 lows.

Interestingly, it weathered the recent AI-driven rug pull better than many of its peers (NVDA ouch!).

All eyes are on whether this momentum can be sustained.

Analyst Expectations -The consensus forecast points to EPS of $2.35 (a 7.8% year-over-year increase) and revenue of $124 billion (a 3.7% year-over-year increase).

Impressively, Apple has consistently beaten earnings and sales expectations for the past five quarters.

Key Factors to Watch

iPhone Sales: The lifeblood of Apple's hardware business. Strong iPhone sales are critical to demonstrate continued demand and justify the recent stock rally.

Services Growth: The powerhouse of Apple's high-margin revenue. Continued growth in services (App Store, Apple Music, etc.) is vital for long-term profitability.

Gross Margin: A key indicator of profitability and cost management.  Last report they hit 46.21%.  They been on a run increases since 2019.  Market will want to see them continue this trend.

Forward Guidance: While Apple hasn't provided explicit forecasts for years, any hints about the current quarter and beyond will be closely analyzed. The rollout of AI features could provide a basis for optimistic projections.

China Performance: Apple's performance in China, particularly iPhone sales, is under scrutiny. Facing increased competition from local brands, Apple's strategy in this crucial market will be a major talking point.

Trade Tensions: Speaking of China, with the potential for increased tariffs, investors will be looking for insights into Apple's plans to mitigate any potential impact on its supply chain and business.

What is the market expecting?

Market is pricing in a $20 range.  $10 up or down.  Apple is currently sitting at 239 as of writing this.

The reports is a pivotal moment Apple. A positive surprise in both results and forward guidance is essential to maintain the recent upward trend and propel the stock higher.

But on the downside, any signs of weakness in key areas like iPhone sales, services growth, or China performance could trigger a freefall. 

We'll be watching closely.

Apple is fun to trade and we wanna see some moves!

Speaking of big moves, if you haven't put your name on the participant list for Licia's Small Account Challenge, you better get a move on!

Licia is taking a $5k account and aims to double it under 6 months.

We went live last night to breakdown the strategy she'll use to run the challenge.  

If you haven't checked it out, watch it here.

The Challenge starts next week!

 

Your Only Option,

Don't miss when our traders go live!

Get an alert everytime we open the live rooms to all of our readers for free by selecting the calendar you use below.

Add Option Pit Live Events to Your Calendar

All the Right Options. The Option Pit Team brings more than 150 years of experience to you every day. From the trading pits of Chicago to the world's largest banks to the halls of power in DC -- they've done it all. Now they’re collectively focused on one thing: making YOU a better, more profitable trader. Click the button below to schedule a call with our concierge Customer Care Team to find your best fit today.

DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk.
DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy.
DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.

Want to change how you receive these emails?

You can Update your preferences

This email was sent by support@optionpit.com. 1-888-872-3301

Option Pit | 190 S LaSalle Suite 3000 Chicago, IL 60603 | Privacy Policy