Why Investors Shouldn't Worry About Apple's Warning
Earlier this week we got one of the first public statements by a major U.S. company on the financial impact the novel coronavirus is having on its business. On Monday, Apple (NASDAQ: AAPL) officially slashed its sales outlook for the current fiscal second quarter.
Citing a slower ramp-up of production since the end of the Chinese New Year, Apple said it doesn't expect to meet its revenue guidance in the current quarter. The iPhone maker also blamed lackluster demand, with most of its stores in China and many of its partner stores shuttered. Reduced hours at the few that remain open are also affecting sales.
That warning didn't sit well with investors or Wall Street, and Apple's shares fell about 3% immediately following the announcement. But the sell-off was short-lived, with the stock recouping about half of the losses by Thursday -- and for good reason. Despite some short-term pain, the coronavirus (officially known as COVID-19) shouldn't leave a lasting impact on Apple's business or its stock. Here's why.
Source Fool.com
