As Apple (AAPL) heads into its earnings report on Monday, the company is trading at record valuations, both in absolute and relative terms. With a forward earnings multiple of 36x, AAPL commands a significant 17-turn premium to the S&P 500. Investors are eagerly awaiting the company’s Services growth, gross margins, and Q4 guidance, as any disappointment could lead to a significant decline in the stock price.

The company’s Services segment, which includes the App Store, Apple Music, and Apple Pay, has been a major driver of growth for Apple in recent years. Investors will be looking for continued expansion in this area, as well as signs of increased competition from tech giants like Amazon and Google. Gross margins are also likely to be a key focus, as Apple has faced increasing costs in areas such as component prices and shipping.

Q4 guidance will also be highly scrutinized, as any disappointment could lead to a significant decline in the stock price. Apple has a history of providing conservative guidance, so investors may be looking for signs of upside potential in the company’s outlook.

Overall, Apple’s earnings report on Monday is likely to be highly anticipated and closely watched by investors and analysts alike. The company’s ability to meet or exceed expectations will be crucial in determining the stock’s future performance.