Why Shares of Apple Are Falling Today
Apple reported strong results that easily beat consensus estimates.
The company saw its best quarter of revenue growth since 2021.
A renewed focus on tariffs and weak jobs data may be weighing on shares.
10 stocks we like better than Apple ›
Shares of the iconic consumer tech giant Apple (NASDAQ: AAPL) were trading nearly 2% lower at 12:05 p.m. ET today, after the company reported earnings results for its third quarter of fiscal year 2025. Shares had traded close to 3% higher earlier in the day before giving away the gains.
A strong quarter
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Apple reported strong quarterly results, with earnings per share of $1.57 and revenue over $94 billion, easily topping Wall Street analyst expectations. In fact, year-over-year revenue growth of 10% is the highest the company has seen since 2021. iPhone sales surpassed $44.5 billion, compared to consensus estimates of roughly $89.5 billion. Apple also had $800 million in costs in the quarter due to tariffs.
"It was an exceptional quarter by any measure," Apple's CEO Tim Cook told CNBC, adding that the company did see a boost from consumers trying to get ahead of tariffs.
Looking ahead, Apple's management team guided for mid- to high-single-digit annual revenue growth in the company's fourth fiscal quarter. Services growth will rival the same 13% growth the company saw in the third quarter, while Apple expects gross margins to fall in the 46% to 47% range, inclusive of associated tariff costs.
Perhaps offset by economic events
It's possible that the strong quarter is being offset by President Donald Trump's renewed focus on tariffs or by the weak jobs data this morning, either of which could lead to the consumer eventually slowing down. I also think investors may want to know more about Apple's plans for artificial intelligence.
Ultimately, I think the strong quarter bolsters Apple's case as a buy, but it's still not the most exciting stock in the Magnificent Seven right now.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!*
Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 29, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
16 minutes ago
- Globe and Mail
New US tariffs cloud outlook for exporters in Asia and beyond
BANGKOK (AP) — President Donald Trump's new tariff rates on U.S. imports from dozens of countries took effect Thursday, the latest chapter in the saga of Trump's reshaping of global trade. But many questions remain. Trump has threatened tariffs of up to 200% on imports of pharmaceuticals and has ordered a 100% import tax on computer chips. Most U.S. imports of copper, steel and aluminum are subject to a 50% tariff. There's still no agreement on what tariffs might apply to products shipped from China. India has no deal yet and faces a potential 50% tariff as Trump pressures it to stop buying oil from Russia. Recent data shows uncertainty is clouding the outlook for exporters around the world as a rush to beat the tariffs during a pause for negotiation tapers off. Companies are reporting billions of dollars in higher costs or losses due to the higher import duties. Global financial markets took Thursday's tariff adjustments in stride, with Asian shares and U.S. futures mostly higher. Here's where things stand in what has proven to be a fast-changing policy landscape. The tariffs taking effect this week The tariffs announced on Aug. 1 apply to 66 countries, Taiwan and the Falkland Islands. They are a revised version of what Trump called " reciprocal tariffs," announced on April 2: import taxes of up to 50% on goods from countries that have a trade surplus with the United States, along with 10% 'baseline'' taxes on almost everyone else. That move triggered sell-offs in financial markets and Trump backtracked to allow time for trade talks. The president has bypassed Congress, which has authority over taxes, by invoking a 1977 law to declare the trade deficit a national emergency. That's being challenged in court, but the revised tariffs still took effect. To keep their access to the huge American market, major trading partners have struck deals with Trump. The United Kingdom agreed to 10% tariffs and the European Union, South Korea and Japan accepted U.S. tariffs of 15%. Those are much higher than the low single-digit rates they paid last year, but down from the 30% Trump had ordered for the EU and the 25% he ordered for Japan. Countries in Africa and Asia are mostly facing lower rates than the ones Trump decreed in April. Thailand, Pakistan, South Korea, Vietnam, Indonesia and the Philippines cut deals with Trump, settling for rates of around 20%. Indonesia views its 19% tariff deal as a leg up against exporters in other countries that will have to pay slightly more, said Fithra Faisal Hastiadi, a spokesperson in the Indonesian president's office. 'We were competing against Vietnam, India, Bangladesh, Sri Lanka and China ... and they are all subject to higher reciprocal tariffs,' Hastiadi said. 'We believe we will stay competitive.' The latest situation for China and India Trump has yet to announce whether he will extend an Aug. 12 deadline for reaching a trade agreement with China that would forestall earlier threats of tariffs of up to 245%. Treasury Secretary Scott Bessent said the president is deciding about another 90-day delay to allow time to work out details of an agreement setting tariffs on most products at 50%, including extra import duties related to illicit trade in fentanyl. Higher import taxes on small parcels from China have hurt smaller factories and layoffs have accelerated, leaving some 200 million workers reliant on 'flexible work' — the gig economy — for their livelihoods, the government estimates. India also has no broad trade agreement with Trump. On Wednesday, Trump he signed an executive order placing an extra 25% tariff for its purchases of Russian oil, bringing combined U.S. tariffs to 50%. India's Foreign Ministry has stood firm, saying it began importing oil from Russia because traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict, a 'necessity compelled by the global market situation.' The hardest-hit countries Struggling, impoverished Laos and war-torn Myanmar and Syria face 40-41% rates. Trump whacked Brazil with a 50% import tax largely because he's unhappy with its treatment of former Brazilian President Jair Bolsonaro. South Africa said the steep 30% rate Trump has ordered on the exporter of precious gems and metals has put 30,000 jobs at risk and left the country scrambling to find new markets outside the United States. Even wealthy Switzerland is under the gun. Swiss officials were visiting Washington this week to try to stave off a whopping 39% tariff on U.S. imports of its chocolate, watches and other products. The rate is over 2 1/2 times the 15% rate on European Union goods exported to the United States. Canada and Mexico have their own arrangements Goods that comply with the 2020 United States-Mexico-Canada Agreement that Trump negotiated during his first term are excluded from the tariffs. Even though U.S. neighbor and ally Canada was hit by a 35% tariff after it defied Trump, a staunch supporter of Israeli Prime Minister Benjamin Netanyahu, by saying it would recognize a Palestinian state, nearly all of its exports to the U.S. remain duty free. Canada's central bank says 100% of energy exports and 95% of other exports are compliant with the agreement since regional rules mean Canadian and Mexico companies can claim preferential treatment. The slice of Mexican exports not covered by the USMCA is subject to a 25% tariff, down from an earlier rate of 30%, during a 90-day negotiating period that began last week. The outlook for businesses Surveys of factory managers offer monthly insights into export orders, hiring and other indicators of how businesses are faring. The latest figures in the United States and globally mostly showed conditions deteriorating. In Japan, factory output contracted in July, purchasing activity fell and hiring slowed, according to the S&P Global Manufacturing PMI. But the data were collected before Trump announced a trade deal that cut tariffs on Japanese exports to 15% from 25%. Similar surveys show a deterioration in manufacturing conditions worldwide, as a boost from 'front loading' export orders to beat higher tariffs faded, S&P Global said. Similar measures for service industries have remained stronger, reflecting more domestic business activity. In Asia, that includes a rebound in tourism across the region. Corporate bottom lines are also taking a hit. Honda Motor said Wednesday that it estimates the cost from higher tariffs at about $3 billion. On top that, the U.S. economy — Trump's trump card as the world's biggest market — is starting to show pain from months of tariff threats. ___
Globe and Mail
an hour ago
- Globe and Mail
Amgen Inc. Reports Strong Q2 2025 Financial Results
Amgen Inc ( (AMGN)) has released its Q2 earnings. Here is a breakdown of the information Amgen Inc presented to its investors. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Amgen Inc., a leading biotechnology company, specializes in developing innovative medicines for serious diseases, including cancer, heart disease, and rare conditions. In its recent earnings report for the second quarter of 2025, Amgen announced a 9% increase in total revenues, reaching $9.2 billion, with product sales also growing by 9%. The company's GAAP earnings per share saw a significant rise of 92%, driven by increased revenues, while non-GAAP EPS rose by 21%. Key products such as Repatha and EVENITY showed strong double-digit sales growth, and the company continued to invest in its research and development programs, including the promising MariTide studies. Looking ahead, Amgen remains focused on sustainable, long-term growth, with a projected revenue range of $35.0 billion to $36.0 billion for the full year 2025, and continued investment in its robust pipeline of innovative treatments.
Globe and Mail
an hour ago
- Globe and Mail
Fidelity National Information Services Reports Strong Q2 2025
Fidelity National Information Services ( (FIS)) has released its Q2 earnings. Here is a breakdown of the information Fidelity National Information Services presented to its investors. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Fidelity National Information Services (FIS) is a global leader in financial technology, providing solutions to financial institutions, businesses, and developers to enhance their financial operations. The company is headquartered in Jacksonville, Florida, and is a member of the Fortune 500 and S&P 500 indices. In its latest earnings report for the second quarter of 2025, FIS announced a 5% increase in revenue on both a GAAP and adjusted basis, reaching $2.6 billion. The company also reported an adjusted EPS of $1.36, marking a 1% increase from the previous year. Despite a GAAP net loss of $470 million, FIS raised its full-year outlook for revenue, adjusted EBITDA, and adjusted EPS. Key financial highlights include a 6% revenue growth in both the Banking and Capital Market Solutions segments. The company repurchased $246 million of shares in the second quarter and reiterated its goal to repurchase $1.2 billion of shares in 2025. Additionally, FIS announced strategic transactions, including the acquisition of the Issuer Solutions business from Global Payments and the sale of its remaining equity interest in Worldpay. Looking ahead, FIS has raised its full-year 2025 outlook, projecting revenue growth between 4.8% and 5.3% and adjusted EPS growth between 10% and 11%. The company remains focused on leveraging its unique position in the fintech industry to drive client success and maintain its competitive edge.
