Apple’s Chief Executive Officer Tim Cook attended the China Development Forum in Beijing on March 24, 2024. The tech giant saw its shares soar over 6% on Friday following the announcement of better-than-expected second-quarter earnings and the largest-ever stock buyback program, signaling the best day for Apple stocks since November 30, 2022.
The impressive $110 billion share repurchase by Apple, the largest in U.S. history, overshadowed any previous buyback efforts by the company. With earnings per share of $1.53 on revenue of $90.75 billion, Apple outperformed analysts’ estimates of $1.50 per share on revenue of $90.01 billion, as reported by LSEG.
Although overall sales dipped 4% and iPhone sales witnessed a 10% decline year-over-year, attributing to waning interest in the latest iPhone models, Apple CEO Tim Cook highlighted the challenging comparison with the previous year’s period as a contributing factor.
Financial analysts from various institutions like Bank of America, JPMorgan, and Morgan Stanley have notably affirmed their favorable outlook on Apple stock, with projections of potential growth driven by innovative developments in generative artificial intelligence features for the iPhone and anticipated upgrade cycles in their product lineup.
Reports suggest that Apple is buoying its iPhone sales in Mainland China, with estimates indicating a positive shift in revisions and the enhancement of GenAI features expected to fuel a robust upgrade trend, exemplifying a promising trajectory for Apple’s future revenue streams.
Further bolstering its position, JPMorgan analysts raised their price target for Apple to $225 from $210, underlining the resilience in year-over-year iPhone revenues and foreseeing a favorable market reception for upcoming iPad enhancements in conjunction with the imminent product launch event by Apple.
Morgan Stanley analysts echoed a similar sentiment by upholding their overweight rating on Apple while elevating their price target to $216 from $210, reflective of Apple’s strong quarterly performance, escalations in iPhone shipments to China, substantial stock buybacks, and indications of forthcoming AI advancements.
All in all, the market sentiment towards Apple stock remains optimistic, with expectations of sustained growth trajectories fueled by iterative product releases and technological advancements, signifying a bullish outlook for the company’s future prospects.
good’s Michael Bloom contributed to this report.
