Tech stocks will be in the spotlight Thursday after Apple Inc. (AAPL) - Get Reportissued a downward revenue revision for the December quarter, sending the stock lower, while its fellow FAANG components also dropped.
Apple now expects to generate revenue of $84 billion, well below the company's previous guidance between $89 billion and $93 billion. FactSet has a consensus forecast of $91.3 billion for the quarter.
Apple blamed macroeconomic headwinds like a strong U.S. dollar and economic deceleration in China for the bearish outlook. "Most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad," the company said.
Apple's hiccup was met with a flurry of analyst downgrades. At least eight different firms issued notes on the company, three issued downgrades.
"Despite Apple's production cuts through F1Q, we assume excess channel inventory will weigh on Apple's shipments into mid-2019. The bright spots are that weak iPhone demand seem partially cyclical, other units are faring well, and the installed base is rising. We lower our estimates and our target to $175, our (aging) rating remains Neutral," Instinet analyst Jeffrey Kvaal said in a note Thursday.
Here is how FAANG stocks are doing Thursday.
Apple is down 8.8%;