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BUZZ-PREVIEW: Apple dips as investor focus on AI and China

Reuters08-02

** Shares of Apple Inc down 2% on Thurs ahead of qtrly results after the bell, as investors focus on steep smartphone competition in China and the iPhone maker's progress on AI

** AAPL has climbed ~13% in 2024, in line with the S&P 500

. The stock is down ~7.5% from its record high close on July 16

** Analysts on avg expect a return to rev growth for AAPL's fiscal third quarter following iPhone discounts in China

** Investors will focus on upcoming iPhones with AI features, and on commentary on iPhone sales and market share in China, BofA Global Markets analysts said in a client note on Mon

** Analysts on avg expect qtrly rev up 3.3% to $84.53 bln, with iPhone sales down ~2% at $38.81 bln, per LSEG. Analysts see adjusted EPS of $1.35 vs $1.26 yr-ago, per LSEG

** At current price, co is trading at ~31x expected earnings, expensive vs its five-yr avg of 26x, per LSEG

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Apple's market cap vs analyst price targets

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(Reporting by Noel Randewich)

((noel.randewich@tr.com;))

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