Strong sales and profits from that could quickly bring down its earnings multiple. Buying before that happens could ensure investors profit from a good return from the stock. Apple’s growth and brand strength make it appealing for long-term investors.
- Total product segment sales increased by 5% to $73.7 billion.
- Forward guidance for the next quarter also shows limited momentum, with projected earnings of $1.65 per share and revenue growth of 2.9%.
- Apple reported a revenue of 94B, which is a -1.4% change from the previous quarter.
- Apple also invests in new products like augmented reality devices, which could open up new growth areas.
- Though a great company, the single-digit growth doesn’t justify a mid-30s PE.
Apple: Muted Reaction To Strong Guidance
- To remain disciplined we recommend trailing up the stop (from $195) to $240 at this time.
- However, demand for the upcoming iPhone 17 appears soft.
- Services revenue climbed by 15% to $28.8 billion, topping the $28.2 billion analyst consensus.
- In this blog, we’ll explore the pros and cons of Apple stock to help you decide if it’s right for you.
Laura Martin, Needham senior internet and media analyst, joins CNBC’s ‘Money Movers’ to discuss her reaction to tech earnings. The CEO was facing risks from Trump’s tariffs, Google litigation and the AI craze. He turned to his playbook and now the iPhone maker is worth $4 trillion. Earnings season kicked into high gear last week when five of the Magnificent Seven members with a combined market value of over $15 trillion reported results.
For long-term investors focused on stability and innovation potential, Apple offers value. But caution is advised until clearer signs of growth emerge. Overall, the average 12-month price target for Apple stock is between $230 and $236, representing about 10% upside from the current level. First, I’ll consider the positive, negative, and everything in between. As mentioned, Apple has built a very solid market position, selling products that consumers love.
Stocks Mentioned
With import tariffs potentially ahead, earnings may suffer. As a result, some investors have fled Apple shares, leading the stock to an 18% decline in the first half of this year — and a lower valuation. Apple is a great stock to own but I wouldn’t buy it today. My concern is that with such a high valuation, expectations are going to be a bit high for the company’s upcoming results, and the risk of a correction looks high. If you invest in it for several years, it can still be a great investment. But at the same time, there are many more attractively priced growth stocks that can make for better buys than Apple right now.
Apple’s earnings standout is the sizable upside to December quarter, says Evercore’s Amit Daryanani
As mentioned, it’s unlikely the company will face extreme tariff levels and today, the stock looks cheap at 29x forward earnings estimates. Apple’s revenue for the last quarter stood at $94 billion. This reflects a decrease of 1.39% from the previous quarter, indicating some short-term concerns about sustained growth.
Dan Ives on AAPL & GOOGL “One-Two Punch,” PLTR Potential, A.I. “Goldilocks Scenario”
However, compared to the same quarter last year, there is a promising increase of 9.63%, pointing towards positive year-over-year growth that suggests underlying business strength. As great of a company as Apple is, even it isn’t immune to the effects of a downturn in the economy. If sales don’t align with expectations, a sell-off could be inevitable for Apple’s stock. Apple is expanding its services division beyond hardware. This includes the App Store, iCloud, Apple Music, Apple TV+, and Apple Pay.
Apple has built up a huge cash reserve, over $200 billion as of 2023. This cash helps Apple weather economic downturns, invest in R&D, and make strategic acquisitions. Investors that want to beat the S&P 500 likely have to stay invested in big tech while looking to make outsize bets elsewhere. Discover top-performing stocks in AI, Crypto, and Technology with expert analysis. The company confronts antitrust litigation in the U.S. and UK.
Investing in stocks always involves risks, and past results don’t guarantee future success. For more on stock investing, see our guide on Pros and Cons of Stock Investments. Yet, if you worry about valuation, iPhone dependency, or competition and supply chain risks, think twice before investing.
Services now make up over 20% of Apple’s total revenue and are growing. This segment is valuable because of its high margins and predictability. According to 29 analysts, the average rating for AAPL stock is “Buy.” The 12-month stock price target is $275.87, which is an increase of 1.96% from the latest price.
If you seek stability, consistent revenue, and strong financials, Apple might be right for you. Apple’s next quarterly earnings report (Q3 FY25) is scheduled for July 31, 2025. Analysts expect the company to post earnings of $1.42 per share, a modest 1.4% increase from the same quarter last year. Revenue is projected to rise to $89.1 billion, up 3.9% year-on-year. It’s impossible to say exactly when Apple will rebound, but I’m all for buying or holding Apple shares in 2025.
It’s important to keep in mind that, though Trump has singled out Apple, the company isn’t facing this problem alone. Most U.S. tech giants rely heavily on manufacturing abroad and, like Apple, could see costs rise if they bring that production to the U.S. In the first quarter of 2025, should i buy apple stock iPhone models took the top four spots in Counterpoint Research’s list of the best-selling smartphones globally. In addition, iPhone models also took top spots last year and the previous year.
In China, which has been a weak spot for the company, revenue fell by 4%. The tech world is competitive, with Apple facing rivals like Samsung, Microsoft, and Google. Samsung competes in smartphones, while Microsoft leads in personal computers and cloud services. IPhone 17 Launch – Expected September 2025It will be the main product event of the year. These strengths make Apple a reliable long-term investment, even if short-term performance is uncertain. Despite the drop, some analysts believe a strong upgrade cycle is coming.