(Bloomberg) -- Apple Inc. shares rebounded Friday as investors looked past a disappointing quarter that was hurt by supply-chain snags, focusing instead on the tech giant’s longer-term prospects.

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The stock jumped 4.2% to $157.22 in New York, shaking off a decline in early trading. Despite some of Apple’s worst holiday numbers in years, investors saw hopeful signs in the company’s latest results, including a jump in services revenue.

During a conference call Thursday, Chief Executive Officer Tim Cook also pointed to a rebound in China, which is emerging from strict Covid-19 rules, and said Apple’s production problems have subsided.

“The world continues to face unprecedented circumstances — from inflation to war in Eastern Europe to the enduring impacts of the pandemic — and we know that Apple is not immune to it,” Cook said on a conference call. “But whatever conditions we face, our approach is always the same. We are thoughtful and deliberate.”

Revenue fell 5.5% to $117.2 billion in the December quarter, Apple’s biggest sales period of the year, coming in well short of the average Wall Street estimate of $121.1 billion. It was Apple’s first quarterly decline since 2019 and the first time the company has missed analysts’ holiday sales projections since 2015.

The iPhone and Mac were particular weak spots for Apple last quarter, dragged down by a broader slump afflicting mobile devices and computers. The Covid restrictions in China added to Apple’s woes, making it harder to ship enough of the most popular versions of the iPhone. Timing was another issue: The company didn’t launch new Macs and HomePods until recent weeks, missing the end of the holiday quarter.