Apple Stock is Up While the Rest of Wall Street Sells Off
Apple stock is higher in Friday's broad-market bashing after the tech giant beat expectations for its fiscal Q3. Here's what you need to know.
Apple (AAPL) is is the only Magnificent 7 stock trading in positive territory Friday after the tech giant beat top- and bottom-line expectations for its fiscal third quarter.
In the three months ended June 29, Apple's revenue increased 4.9% year-over-year to $85.8 billion, driven by 14.1% growth in services to $24.2 billion. Its earnings per share (EPS) improved 11.1% from the year-ago period to $1.40.
"During the quarter, our record business performance generated EPS growth of 11 percent and nearly $29 billion in operating cash flow, allowing us to return over $32 billion to shareholders," said Apple Chief Financial Officer Luca Maestri in a statement. "We are also very pleased that our installed base of active devices reached a new all-time high in all geographic segments, thanks to very high levels of customer satisfaction and loyalty."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results handily beat analysts' expectations. Wall Street was anticipating revenue of $84.5 billion and earnings of $1.35 per share, according to Yahoo Finance.
Apple also said that Mac sales increased 2.5% to $7 billion and iPad sales surged 23.7% to $7.2 billion. On the other hand, iPhone sales slipped 0.9% to $39.3 billion and Wearables, Home and Accessories sales decreased 2.2% from the year-ago period to $8.1 billion.
On Apple's conference call, Maestri said the company expects revenue to grow at a similar rate in its fourth quarter from the prior year, including a double-digit growth rate in services.
Is Apple stock a buy, sell or hold?
It was a rough start to the year for Apple, but shares turned a corner in early May after the company unveiled a massive stock buyback program. Since May 1, AAPL is up nearly 32%, adding to its impressive long-term return.
Unsurprisingly, Wall Street is bullish on the blue chip stock. According to S&P Global Market Intelligence, the average analyst target price for AAPL stock is $231.32, representing implied upside of nearly 4% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Needham is one of those with a Buy rating on AAPL stock.
"We argue that the best way to think about AAPL's valuation, pricing power, competitive advantage period, and barriers to entry is through the lens of AAPL's installed base of more than 1.25 billion of the wealthiest consumers in the world using more than 2.2 billion active devices an average of 5 hours per day," said Needham analyst Laura Martin said in a note this morning.
"We believe AAPL's goal is to grow long-term volume through increasing the average revenue per user and lowering churn levels by up-selling its users into additional devices and services," Martin adds
Needham has a $260 price target, which sits more than 16% above where Apple is currently trading.
Related Content
- Amazon Stock: Why One Analyst Says to Buy the Earnings Dip
- Analysts' Top S&P 500 Stocks to Buy Now
- Stock Picks That Billionaires Love
-
Nasdaq Sinks 418 Points as Tech Chills: Stock Market TodayInvestors, traders and speculators are growing cooler to the AI revolution as winter approaches.
-
23 Last-Minute Gifts That Still Arrive Before ChristmasScrambling to cross those last few names off your list? Here are 23 last-minute gifts that you can still get in time for Christmas.
-
The Rule of Compounding: Why Time Is an Investor's Best FriendDescribed as both a "miracle" and a "wonder," compound interest is simply a function of time.
-
Nasdaq Sinks 418 Points as Tech Chills: Stock Market Today
Investors, traders and speculators are growing cooler to the AI revolution as winter approaches.
-
The Rule of Compounding: Why Time Is an Investor's Best Friend
Described as both a "miracle" and a "wonder," compound interest is simply a function of time.
-
If You're a U.S. Retiree Living in Portugal, Your Tax Plan Needs a Post-NHR Strategy ASAPWhen your 10-year Non-Habitual Resident tax break ends, you could see your tax rate soar. Take steps to plan for this change well before the NHR window closes.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
The Delayed November Jobs Report Is Out. Here's What It Means for the Fed and Rate CutsThe November jobs report came in higher than expected, although it still shows plenty of signs of weakness in the labor market.
-
Your Year-End Tax and Estate Planning Review Just Got UrgentChanging tax rules and falling interest rates mean financial planning is more important than ever as 2025 ends. There's still time to make these five key moves.
-
What Makes This Business So Successful? We Find Out From the Founder's KidsThe children of Morgan Clayton share how their father's wisdom, life experience and caring nature have turned their family business into a respected powerhouse.
-
Stocks Struggle Ahead of November Jobs Report: Stock Market TodayOracle and Broadcom continued to fall, while market participants looked ahead to Tuesday's jobs report.
