Apple Stock Plummets Despite Beating Earnings Expectations

Apple's stock took a significant hit despite beating earnings expectations on July 31. The company reported better-than-expected revenue and earnings per share, but its shares plummeted due to market misconceptions about supply timing issues indicating weak demand.

The analyst notes that Apple's core fundamentals remain strong, with double-digit growth in major product lines, robust cash flow, and ongoing share buybacks. Minor misses were seen in services and Greater China, but the memory supply squeeze is viewed as a cyclical issue.

Despite this, the analyst remains bullish on Apple's prospects, citing its pricing power and AI strategy as drivers of future margin growth. The recommendation is to sell October $300 puts or buy shares based on historical patterns and seasonality.