When the going gets tough, stick with reliable businesses. For a good example of this principle in action, consider how Apple (NASDAQ:AAPL) stock held up comparatively well during this harsh earnings season.
Granted, some skeptics will observe that Apple isn’t planning to ramp up its hiring activity, but that’s not a reason to dismiss the tech giant.
It’s been just one problem after another for Big Tech in 2022. From supply chain woes to “sticky” inflation and Covid-19 lockdowns in China, the headlines all seem to be bearish lately.
Some people would add reports of hiring freezes to that list. Should Apple’s investors be concerned if the company isn’t planning to expand its headcount? Not necessarily, as the data will remind us of Apple’s resilience during these tough times for tech.
Apple’s Chilling on the Hiring, but Don’t Sweat It
Is it a deal-breaker if Apple plans to slow or halt its hiring activity? That’s for you to decide, but after delving into the details, you might decide not to lose sleep at night over Apple’s apparent hiring freeze.
So, here’s the scoop. Apparently, three “sources” said that Apple has halted its hiring activity for positions “across corporate divisions.” Furthermore, Apple’s pause in hiring could continue through September of 2023.
One of the three sources claimed that the hiring freeze will affect “full-time employees inside the company.” It’s not all negative news, though, as “divisions such as retail” are reportedly “still likely to add sales staffers at Apple locations in advance of the holiday gifting rush.”
So really, it’s not even a full-fledged hiring freeze as Apple seems to anticipate a robust holiday shopping season. Most likely, the company is just being cautious and a discontinuation of the hiring halt in the near future shouldn’t be too surprising if it happens.
AAPL Stock Didn’t Tumble Post-Earnings
The third-quarter 2022 earnings season was notorious for Big Tech companies. However, AAPL stock traders mostly maintained their composure after Apple released its quarterly data.
The Apple share price is down this year, but in light of the company’s earnings beat, there should be room for a recovery. If anything’s weighing the shares down, it’s probably general anxiety about Big Tech, not anything specific to Apple.
After all, Apple’s Q3 2022 earnings report has some notable strong points. The company announced a September-quarter record in terms of revenue, for example. Apple’s quarterly revenue totaled $90.1 billion, up 8% year-over-year (YOY), exceeding Wall Street’s forecast of $88.9 billion.
Meanwhile, Apple’s earnings per diluted share of $1.29 represented a 4% YOY improvement. That might not sound like much, but again, its was a harsh quarter for Big Tech overall. Moreover, Apple’s result beat the analyst consensus estimate of $1.27 per share.
What You Can Do Now
So, you have a choice to make. You can worry about Apple’s reported hiring freeze – which isn’t really a complete freeze, by the way. Or, you can browse through Apple’s financial data and consider how well the company performed during a tough quarter.
This isn’t to suggest that it will always be smooth sailing for Apple and its shareholders. There will be more challenges, and not everybody will be ready to buy more shares of AAPL stock. If this describes you, then feel free to hold on to the shares you already have as the holiday season could bring nice gifts, and possibly nice profits as well.
On the date of publication, Louis Navellier had a long position in AAPL. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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