From Nasdaq: 2025-02-12 11:11:00

Apple shares have declined 7.1% year to date, with sluggish demand for iPhone in China. Despite this, iPhone sales saw growth in regions with Apple Intelligence, with active installed base at an all-time high. In emerging markets, iPhone was the top-selling model in India, driving double-digit growth.

Apple launched Apple Intelligence features in more countries, aiming to boost iPhone upgrades. The Services business, with 1 billion paid subscribers, drove revenue growth in the first quarter. Apple expects low double-digit revenue growth in the upcoming quarter.

Estimates show a slight decline in Apple’s earnings for the second quarter, but the company has a history of beating expectations. The stock is trading at a premium, with a stretched valuation compared to the sector average.

While Apple’s AI push and Services business are promising, the stock may not justify its premium valuation. With a Zacks Rank of #3 (Hold), it may be wise to wait for a better entry point. Apple Intelligence is still catching up to competitors like Microsoft, Alphabet, and Amazon.

Zacks Investment Research has identified a top semiconductor stock with strong growth potential. With expanding customer base and demand for AI, ML, and IoT, the semiconductor industry is projected to grow significantly by 2028. Download the free report to learn more.



Read more at Nasdaq: Apple Down 7% Year to Date on iPhone Weakness: Buy or Hold the Stock?