BUZZ - Preview: Stock price drops ahead of Apple's earnings report; foldable iPhone sales become the focus

November 2 - ** Apple AAPL.O shares fell 2.1% on Monday afternoon as the company is set to release its quarterly earnings after the market close, with investors expected to focus mainly on early sales of its new foldable iPhone Duo.

** According to London Stock Exchange Group (LSEG) data, analysts expect the iPhone maker to report quarterly revenue up 11% year-on-year to $113.39 billion, with adjusted earnings per share of $1.99, compared to $1.85 in the same period last year.

** The company launched its first foldable phone, the iPhone Duo, in October with a starting price of around $2,000; initial supply is limited.

** John Ternus will host his first earnings call as Apple CEO. He took over the helm from Tim Cook in September (link).

** Apple previously forecast in July (link) that sales growth for the quarter ending in September would trail Wall Street expectations.

** Daniel Morgan, senior portfolio manager at Synovus Trust Company, said one question investors might ask is: "How much longer can AAPL be traded as a countercyclical AI stock?"

** He wrote: "Apple is clearly lagging its tech peers in the field of artificial intelligence. However, despite mixed core results in late July, Apple's share price still outperformed a basket of leading AI companies... This strong performance is attributed to investors taking a more defensive stance."

** Apple shares have risen about 24% so far this year, outpacing the Dow Jones .DJI index, which is up around 9% over the same period.

** According to ORATS data, AAPL options imply a potential 4.2% share price swing the day after earnings are released (in either direction); over the past 12 quarters, the average post-earnings share price move has been 3.8%.

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