Apple Shares rose 6% on Friday after the corporate reported better-than-expected second-quarter results and its largest share repurchase program ever. It was the stock's best day since November 30, 2022.
The iPhone maker announced Thursday that it will buy back $110 billion of its shares. This is the most important buyback in US history, surpassing Apple's previous buybacks. According to LSEG, the corporate reported earnings of $1.53 per share on revenue of $90.75 billion, beating analyst estimates of $1.50 per share on revenue of $90.01 billion -Dollar.
But total revenue fell 4% year-over-year in the course of the quarter and iPhone sales fell 10%, indicating slowing demand for the newest generation of smartphones. Apple CEO Tim Cook told CNBC that quarterly sales suffered from a difficult comparison to the identical period last 12 months.
Analysts at Bank of America reiterated their buy rating on Apple stock, calling it a top pick. In an investor note on Friday, they raised their price goal to $230 from $225 and wrote that they expect the corporate to introduce generative artificial intelligence features to the iPhone this 12 months.
“Apple is expanding iPhones in mainland China, estimate revisions are trending positively, and GenAI features will drive a strong upgrade cycle,” they wrote.
JPMorgan analysts, who maintained an “overweight” rating, on Thursday raised their price goal on Apple to $225 from $210, citing “robust” year-over-year iPhone sales and “expectations of a boost from the upgrade.” “Cycle caused tailwinds for iPads” ahead of Apple’s product launch event next week.
“All in all, modest year-over-year revenue growth may not be the ideal outcome,” they wrote, “but now offers insight into higher revenue opportunities in the coming years with tailwinds from product cycles in hardware devices as well as an AI-driven smartphone cycle continues to stimulate growth.”
Morgan Stanley analysts maintained their obese rating on Apple and raised their price goal to $216 from $210 on Friday. They pointed to the corporate's quarterly performance, year-over-year growth in iPhone shipments to China in March, stock buybacks and hints of upcoming AI updates.
“It’s hard not to get even more optimistic here,” they wrote.
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