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Apple ( AAPL -1.83% ) , the technology giant behind the iPhone and its expanding digital services business, closed Monday at $338.32, down 1.83% amid a broader technology sell-off. Following the closing bell, Apple reported better-than-expected quarterly earnings, supported by strong iPhone demand, providing investors with a more encouraging outlook after a difficult trading session. Trading volume reached 55.4 million shares, approximately 32% above its three-month average of 42.1 million, as investors anticipated the company's earnings announcement.
AAPL Apple $338.32 -$6.31 (-1.83%) NASDAQ · As of 4:00 PM ET 11/02/26 How the markets moved today The S&P 500 ( ^GSPC -0.51% ) fell 0.50% to 7,542, and the Nasdaq Composite ( ^IXIC -1.07% ) lost 1.07% to 25,164. Among consumer electronics, personal computers, smartphones and digital services peers, Microsoft ( MSFT -2.83% ) closed at $507.12, -2.83%, while Alphabet ( GOOGL -0.30% ) ( GOOG -0.07% ) closed at $278.99, -0.30%. What this means for investors Apple's latest earnings offered investors some reassurance following a difficult session for technology stocks.
The company reported fiscal fourth-quarter revenue of $114.5 billion, exceeding Wall Street expectations, while earnings of $2.10 per share also topped forecasts. Strong demand for its latest iPhone 18 helped drive the results, with iPhone revenue increasing approximately 17% year over year to $57.6 billion. However, the report wasn't without concerns.
Apple's gross margin declined to 47.9% from 50.1% in the previous quarter, reflecting rising component costs and a smaller benefit from tariff refunds. Sales in China and the iPad business also fell short of expectations, highlighting challenges beyond its core iPhone franchise. For investors, the results reinforce Apple's ability to generate revenue growth even amid broader economic uncertainty.
With technology valuations under scrutiny, the focus now shifts to whether Apple can sustain strong iPhone demand through the holiday season while protecting profitability. RJ Fulton has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, and Microsoft.
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Source: The Motley Fool
