Investors have also come to view greater resources and heightened flexibility in larger companies as an advantage over some smaller names, he added. Apple's differences Investors have flocked to Apple given its large, integral user base that's able to limit any potential downside, Chatterjee said.
Apple shares are also trading toward the higher part of its recent range. Some of those "dissimilarities" include stabilizing growth rates "more evident for other Big Tech companies versus Apple's set up for revenue and earning declines," he said. "The question of whether Apple can follow the other Big Tech companies, which have outperformed on their recent prints, and raise the likelihood of a more favorable year for Big Tech over the rest of the market, is tricky as while there exist many similarities in relation to broad drivers, there are at the same time different fundamental drivers in play," JPMorgan analyst Samik Chatterjee said in a Wednesday note to clients. Now, investors are anxiously waiting to see if the iPhone maker will follow in those companies' footsteps. The largest tech companies so far this earnings season appear to be faring better than feared, despite expectations for broad earnings declines compared with a year ago. Apple on Thursday is expected to post its second consecutive down quarter, with some analysts anticipating forward guidance to show yet another year-over-year decline in the June quarter. Apple shares are up almost 31% this year. Meta Platforms shares have doubled, while Alphabet and Microsoft are up about 20% and 28%, respectively, as investors bet on AI. Stocks in tech behemoths such as Apple have been resilient in 2023 despite concerns of an economic downturn. So far this year, investors have flocked to the tech sector as bond yields fall, and the recent bank crisis spurred a flight to safety in companies offering rock-solid balance sheets and cash flows. With the Federal Reserve's rate decision now in the rearview mirror, the next major test for markets will come from Apple 's March quarter earnings, scheduled for release postmarket Thursday. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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