From Nasdaq Media Group: 2024-05-03 17:04:00

Apple (NASDAQ: AAPL) reported earnings in line with expectations but disappointed with a revenue drop. Bank of America raised its price target to $230, citing iPhone potential and AI investments. CEO Tim Cook highlighted generative AI possibilities on the earnings call, driving a 6% stock surge to $173.

With revenue down 4% YoY at $90.8 billion, Apple’s iPhone, iPad, and wearables saw declines. BofA analysts foresee a strong sales cycle for iPhone ahead, driven by generative AI opportunities. Despite the 26x forward P/E ratio and lack of earnings growth, long-term investors may find potential in Apple’s AI strategy.

Challenging the $230 target could take time, but with over 2.2 billion active devices, Apple has the potential to dominate AI monetization. Consider other stock options recommended by the Motley Fool Stock Advisor team, offering new stock recommendations, portfolio guidance, and monumental returns potential.



Read more at Nasdaq Media Group: Is Apple Stock Going to $230? 1 Wall Street Analyst Firm Thinks So.