Is Apple Stock a Buy After Its Latest Earnings?
2022 has been a challenging year for investors, for consumers, and for corporations. There has been some variation in the challenges each face, but all of them have had to deal with supply chain disruptions, rising interest rates, and inflated costs. Even the largest, most disruptive companies have had to deal with these variables in some form.
A big part of the challenge for companies is accurately gauging how the effects of inflation and rising interest rates will impact consumer spending and purchasing power. Apple (NASDAQ: AAPL), which generates much of its revenue from its premium-priced hardware devices, appears vulnerable to this systemic risk. But the company's most recent earnings report suggests the tech giant is managing the turbulence just fine. Let's dig into Apple's report and see if we can determine what it's doing right and explain why the company looks to be a good long-term buy.
The Federal Reserve has been working to combat the highest inflation the U.S. has seen in nearly four decades. There are textbook methods for getting inflation under control but investors need to understand that there are only so many levers the Fed can pull without creating new, potentially worse problems. In such a challenging economic environment, it is natural to think that companies like Apple, which primarily sells luxury consumer hardware, could struggle.
Source Fool.com
