From Nasdaq: 2024-05-06 20:26:38

Apple (AAPL) reported a 4% drop in sales for Q2 FY’24, with revenue at $90.8 billion and earnings at $1.53 per share. Despite the decline, Apple’s earnings exceeded expectations, leading to a 6% stock gain in extended-hours trading. iPhone sales fell by almost 10% to $45.96 billion, partly due to tough comparisons and slower demand in China.

AAPL stock has seen fluctuations with 35% returns in 2021, -26% in 2022, and 49% in 2023. Comparatively, the S&P 500 had 27% returns in 2021, -19% in 2022, and 24% in 2023. The Trefis High Quality Portfolio outperformed the S&P each year. As oil prices rise, AAPL may face challenges in the next 12 months.

Apple is valued at $180 per share, aligning with the current market price. Apple’s growth may be subdued, but it could benefit from selling premium products and increasing service offerings. The company has a significant opportunity in generative AI, despite not making big AI announcements recently. Stock buybacks and a focus on user data privacy could further support Apple’s share price.



Read more at Nasdaq: Will Rising Margins And Stock Buybacks Drive Apple Higher?