Apple's Stock Is Discounting All The Bad News

• Apple Inc. AAPL shares have lost 18 percent in the past month.
• JP Morgan's Rod Hall maintained an Overweight rating for the company.
• Apple suppliers preannounced lower-than-expected revenue, but the bad news seems to be priced into the stock, Hall stated.

Apple supplier Qorvo Inc QRVO made a disappointing preannouncement for FQ3 projecting revenue of $620 million, versus guidance of $720 million and 14 percent short of the consensus estimate of $724 million. The company guided to FQ4 revenue of $620 million, which also missed consensus of $641 million.

Related Link: Where Is Support In Apple?

Audio IC chip supplier Cirrus Logic, Inc. CRUS expects December quarter revenue of $347 million, short of the consensus expectation of $386 million, implying ongoing softness in the March quarter. Cirrus Logic indicated that weakness had escalated over the last few weeks of December, which is likely to significantly impact March quarter revenue as well.

“The negative signals for Apple continue to come in though we believe the stock is now discounting quite a bit of bad news. Nevertheless, it seems unlikely that Apple will be able to continue to buck negative macro trends in many of their large markets,” Hall wrote.