00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Apple shares fell 7.35% on July 31st, even after fiscal third quarter earnings and revenue beat
00:09Wall Street expectations, according to The Street. Apple said supply constraints and
00:14higher memory costs are expected to pressure iPhone, iPad, and Mac sales,
00:18while gross margins are set to decline in the September quarter.
00:22CEO Tim Cook described the memory supply shortage as a 100-year flood,
00:27citing severe constraints and limited supply chain flexibility.
00:31Morgan Stanley lowered its price target, citing supply constraints,
00:35margin pressure, and slowing services growth.
00:38The bank maintained its overweight rating, but lowered its price target to $360 from $364
00:44and retained a cautious industry view.
00:47The firm said it is too early to determine whether Siri AI will drive meaningful growth
00:51because AI has not yet measurably boosted Apple's products or services businesses.
00:55For all things money, visit Benzinga.com.
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