Morgan Stanley analyst Katy Huberty writes in a research note that App Store net revenue is up 35% for the first two months of the June quarter, nearly twice the 18% growth rate she had been projecting previously. She says that equates to an extra $500 million in services revenue.
Huberty inches up her June quarter earnings estimate to $1.99 a share from $1.92, and bumps up her September quarter forecast to $2.80 a share from $2.74. Huberty maintains an Overweight rating on Apple (ticker: AAPL) stock, and lifts her price target to $340, from $326.
Huberty says preliminary data from the research firm Sensor Tower suggests App Store net revenue grew 39% year-over-year in May 2020, the strongest monthly growth rate since April 2017. That’s up 8 percentage points from April’s growth rate, and 20 points higher than the 19% growth rate in the March quarter. Huberty projects Apple’s services revenue in the June quarter will rise 16.7%, up from a previous forecast of 12%.
U.S. equity futures edged lower for the first day five Thursday as investors paused a global rally that has lifted world stocks to the highest levels in three months ahead of a key European Central Bank meeting that could add billions more in stimulus to a market already awash with rescue cash.
Wall Street surged to three-month highs last night as a far better-than-expected reading of private sector job losses for the month of May, based on data from payroll provider ADP, added to evidence of a steady global economic recovery from the cornonavirus pandemic.
With central banks buying $2.4 billion worth of financial assets every hours in order to keep markets stable during the worst of the coronavirus crisis, and governments from Brussels to Tokyo making recent pledges to spend billions more, investors have been largely sanguine over market risks such as U.S.-China trade tensions and domestic protests linked to police brutality and the death of George Floyd in Minneapolis on May 25.
My take: The U.S. markets have more on their mind than an ECB policy meeting.
I’m seeing a RSI at 69.14 and a PE at 27.34, it could be time that this stock takes a break, or not. And then there’s that gap from a couple of weeks ago. Just sayin.
All that positiveness, and yet a bump in price target of less than 5%?
There are a lot of unknowns. I don't think most, 1-3 months ago, would imagine AAPL nearly at it's ATH right now. This helps show her feeling on it, basically that this ground is unsteady, and thus using a little more safety in a 1 year target, since her and other paid analyst targets tend to not look at the very best that could possibly happen, but rather what is decently probable for happening. Maybe that's not the median of her guesses, but it's probably in the 50-75% probability range.
I'd like to see annual targets 10+% out there, but with multiple levels of uncertainty, it makes sense to be cautious, put out a number, and then raise it if things look to be improving or at least minimizing the wall of worry items.
Options prices on AAPL are faltering just a little. As overjubulence fades, and RSI flattens, prices come down at least a tiny bit. The question is if there will be another push up, due to iPhone SE sales and purchasing in China, or if there will be a bit of regrouping and digging in. Very long term neither matter much, but often people watch the waves at the ocean more than the tide.
We have the choice to build this board up, or tear it down. Make the right choice, or don't post here.
To All: Please remember to keep non-Apple SPECIFIC political stuff out of the daily thread. Post it over in the Dungeon, if you really want to discuss it with others on the AAPL Finance Board.
8-24-20 I give a 40+% probability on 15+% annualized returns for the next 2 years. For Sept expirations, using today's ($125.75), that's roughly ($146) for Sept '21, ($169) for Sept '22
SomeJuan: M1X... 16 cores of CPU, 16 cores of GPU, 4nm TSM fab, katy bar the door...
Jan 16, 2021 9:45:11 GMT -5
mercel: It's been a long strange trip - good to see you're still around (and in AAPL -my assumption).
May 10, 2019 12:48:32 GMT -5
Zeke: Long time no see. Nice to see familiar names still here.
Mar 25, 2019 14:42:52 GMT -5
sponge: Regarding the future of VR, I think it will be huge. I was a gamer when I was in college. But as an adult I lost interest. Last fall I flew up to visit my son at college and check out his new Vive set up. After playing with it for the weekend, I was
Apr 29, 2018 15:25:17 GMT -5
galleybob: thanks for your answer. I will copy and send to her
Nov 7, 2017 15:32:18 GMT -5
rickag: So since Jan 28th 2015 AAPL is up from 117.27 to 157.21
Aug 21, 2017 20:09:43 GMT -5
artman1033: VXAPL = 29.21 AAPL = $117.27 AFTER EARNINGS
Jan 28, 2015 14:54:46 GMT -5
artman1033: VXAPL = 44.94 AAPL = $110.39 BEFORE EARNINGS
Jan 27, 2015 11:12:53 GMT -5