Apple AGM to Impact 21% YTD Gains?

Apple shares have appreciated over 21% this year, buoyed by a more optimistic economic outlook than earnings. What's next?

"Wizzard of Omaha" Continues To Build Stake

On March 10th, Apple will hold its annual shareholders' meeting in virtual format, which has become the standard for the tech company since the pandemic. On the docket to get voted on are routine issues, such as approving the quarterly dividend (expected to remain at a quarterly $0.23/shr) and executive pay. There will also be a presentation of the company's results for the last year, which was already reported to the market on February 2nd with the quarterly report.

Interestingly Warren Buffett's Berkshire Hathaway has been building its stake in Apple and is now the second largest holder. Despite Apple's disappointing on its earnings for the last quarter, the "Wizard of Omaha" keeps building his stake and could be an increasingly prominent figure in Apple, having crossed the 5.0% reporting threshold.

Can Tim Bring Apple Back Into The News?

No major product launches are expected at the event, and executives are expected to provide the same general comments about the company and its outlook that have been previously reported. But there is always the chance that a turn of phrase from the CEO, Tim Cook, could be interpreted by the market as changing the outlook for the firm. Typically, he will give a series of interviews on financial media on the day of the AGM, which could put the company back into the news.

The main issues that could be brought up are things like Apple's apparent shift of manufacturing from China to India and whether the fire at the Foxlink facility making iPhone chargers might have disrupted plans. The other issue is the shift to 3-nanometer chips. On Monday, there were press reports that Apple could make its own 5G modems using TSMC's new process and debut in the iPhone 16 next year. 

Flag of Flag Completed

In the long-term, the price of Apple has been correcting within a descending flag pattern up until it received rejection at the lower end of $125.00. It has surged substantially since, putting a local high at $157.00 for a short-term flag correction to $144.00. If the trend continues, APPL could head to the upper trendline shy off the $170.00 handle, where further directional clues could determine the stock's long-term outlook. Losing the flag low, however, might open the door to $125.00 unless $140.00 holds firm.

Source: Spreadex

Key Takeaways

At the Apple AGM on March 10th, shareholders are expected to vote on routine issues such as the quarterly dividend, executive pay, and the presentation of the company's results for the last year. Warren Buffett's Berkshire Hathaway is now the second largest holder, building its stake despite Apple's earnings report from February 2nd. Tim Cook could potentially bring the company back into the news through a turn of phrase in his interviews. Regarding product launches and shifts in manufacturing, the company will likely address the move to India and whether the fire at the Foxlink facility has disrupted plans.