Apple AAPL 0.9% earnings boost is enough to keep it alive, analyst says
By BRIAN BECKERAssociated PressAssociated PressAAPL 0 and BNSF, +0.39% Apple AAPY, -0.35% AAPL, +1.29%BNSF is expected to report earnings of $2.97 billion, or $2 a share, on Thursday.
That’s the biggest gain for Apple since June 2015.
The stock was up nearly 5% in after-hours trading Thursday.
The stock surged on Wednesday when CEO Tim Cook made the bold claim that Apple’s growth in the U.S. is in “overdrive” and it is the most productive company on the planet.
That is not true.
In fact, the U-turn was more about Apple selling more iPhones than selling more shares, and that could hurt the stock.
The company has been struggling to find new revenue sources.
Analysts believe Apple is struggling to turn profits, while the stock is also in danger of losing some of its value because of the lack of demand from its consumers.
Cook said the company is “on track” to make a profit in the fourth quarter of 2020.
The company expects to earn about $2 billion in 2020.
The forecast came just weeks after Cook said that the U,S.
economy is “in a full throated state” that could lead to a third recession.
The unemployment rate has fallen to 9.1%, the lowest in over 20 years.