AAPL Takes a Hit as Weaker Guidance Trumps Strong Earnings

Apple's stock price is hovering around $306 as investors react to the company's quarterly earnings report. The results were strong, with revenue increasing 16% year-over-year to $109.4 billion and earnings per share rising 29% to $2.02.

The company reported record sales for its iPhone, Mac, and Services segments, with iPhone revenue up 22% to $54.3 billion, Mac revenue increasing 29% to $10.4 billion, and Services revenue growing 12% to $30.7 billion.

However, the main issue for Apple's stock is not current demand, but weaker visibility for the coming quarters. The company expects revenue growth of only 9-11% in the current quarter, compared to market expectations of around 12%.