![]() So, don’t be too concerned if tech fans aren’t gushing about Apple’s new chips, notebooks, and other hardware. The consensus price target is about $203… 20% upside from current levels. According to TipRanks, 22 of the 31 sell-siders at top research firms have a “buy” rating on the stock. Wall Street analysts are, for the most part, optimistic about Apple. Apple had $166.5 billion in cash and marketable securities as of July 1. There is another level of safety with Apple as well, thanks to its fortress balance sheet. Not as high as a Treasury bond obviously, but that dividend offers some stability in uncertain times. The company pays a dividend that yields 0.6%. Analysts now expect average annual earnings gains of about 7% over the next few years compared to a more than 22% annual increase over the past five years. Yes, Apple may be a slower growth company than it used to be. 30 Mac event that “the best way to think about AAPL’s valuation, pricing power, competitive advantage period and barriers to entry is through the lens of more than 1B of the wealthiest consumers in the world, using >2B active AAPL devices an average of 5 hours per day.” She added that Apple’s goal is to boost its average revenue per user and lower churn by bundling add-on services. Laura Martin, an analyst with Needham, who has a “buy” rating on Apple stock, said in a report after the Oct. Given the recurring revenue from services, which many Apple users rely on, the stock still looks attractive. (iPhone is still the dominant money maker, generating nearly half of Apple’s total sales). By way of comparison, the once mighty Mac now makes up just 7% of Apple’s total sales. Services now account for more than a quarter of Apple’s overall revenue. The only product category to report an increase in sales was the Wearables, Home and Accessories unit.īut revenue from services, subscriptions for things like iCloud, Apple TV+, Apple Music and numerous other App Store purchases, rose more than 8% to a record level of $21.2 billion. Yes, sales of Apple’s products fell more than 4%. Just look at the company’s third quarter results. It seems that investors are betting on a continued boom from Apple’s services business, even as demand for computers, iPhones (despite the new iPhone 15 lineup) and iPads wanes. And if you dig deeper, there actually is a good reason for that. Apple Earnings Set to Show Slower GrowthĪlthough expectations for Apple’s earnings report are muted, the stock is still up more than 30% year to date. That’s not incredibly exciting for a supposedly hot growth stock that also happens to be the most valuable company on the planet, with a market capitalization near $2.7 trillion. Wall Street is predicting only a slight increase in earnings per share from a year ago and a decline in revenue. Apple reports its fiscal fourth quarter earnings on Thursday, Nov. Or they may be just waiting for the bigger iNews coming from the company later this week. Investors might be underwhelmed by the new product releases. Shares of Apple fell slightly Tuesday morning. But so far, investors are viewing the news as more trick than treat. Apple (NASDAQ: AAPL) hosted a pre-Halloween event Monday night to debut its new M3 line of processing chips, its latest MacBook Pro laptops and even an updated iMac desktop.
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