On Friday, Apple shares saw a reduction in losses that initially stemmed from the company’s projection of a lackluster holiday quarter. This change in fortune followed a U.S. jobs report that raised expectations of a Federal Reserve interest rate hike pause.
In early trading, Apple’s stock (AAPL.O) was down 1.5%, having previously dropped over 3% before the market opened. The world’s most valuable company faced the prospect of losing $40 billion in market value if the losses were to persist.
On Thursday, Apple provided a sales forecast for the upcoming holiday quarter, which is traditionally its strongest period. However, the company’s projections fell short of Wall Street’s expectations, attributing the lower forecast to sluggish demand for iPads and wearables.
This outlook has fueled concerns regarding overall holiday demand, with various estimates, including those from the U.S. National Retail Federation and Deloitte, indicating a slowdown in sales growth during the crucial holiday shopping season due to persistent inflation.
Bernstein, a brokerage firm, commented on Apple’s situation, noting that the company’s revenue growth has stagnated over recent quarters and is likely to continue on this trajectory in the coming year. The holiday quarter typically sets the tone for Apple’s fiscal year, which extends until September.