Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, and HomePod. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It distributes third-party applications for its products through the App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers.
Their vision coincided with a revolution within the PC industry and helped to create personal computing as we know it today. The company’s first product was a personal computer known as the Apple 1 but the product line has since evolved to include a wide range of desirable personal computing devices. Not surprisingly, AI is expected to become the next big growth driver for the smartphone industry. According to Counterpoint Research, shipments of generative AI-capable smartphones could grow four times over between 2024 and 2027, with cumulative shipments crossing one billion units by 2027. More importantly, Counterpoint is expecting Apple to enter the generative AI smartphone market in 2024 and become the leading smartphone OEM (original equipment manufacturer) in this space from 2025. The average analyst rating for Apple stock from 33 stock analysts is “Buy”.
About MarketBeat
Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. That’s much needed right now considering that Apple’s rival Samsung is already reaping the benefits of offering AI-specific features on its latest Galaxy flagship phones. The South Korean giant points out that half of the customers purchasing the Galaxy S24 smartphone family were doing so because of the integrated AI functions. More importantly, 60% of the people buying the S24 devices have been regularly using the AI functions on offer. The Consumer Financial Protection Bureau on Thursday issued a finalized version of a rule saying it will soon supervise nonbank firms that offer financial services likes payments and wallet apps. Apple’s iPhone 16 model doesn’t meet Indonesia’s 40% domestic content requirements for smartphones and tablets and hasn’t been granted clearance to be sold in the country.
U.S. stocks fell on Thursday on disappointing results from Tech companies.
Cook joined the company in 1988 as Senior VP of Global Sales and went on to become Executive VP of Global Operations before taking on the chief executive role. In his tenure, Mr. Cook has more than doubled Apple’s revenue and earnings while growing the company’s value by more than 450%. So investors looking to add a dividend-paying tech stock to their portfolios would do well to buy Apple right away, as it seems set to deliver healthy gains over the next five years. The company’s top line was down 4% year over year, while the bottom line fell by a penny.
Apple’s board initiated a stock buyback plan on Thursday, May 2nd 2024, which permits the company to repurchase $110,000,000,000 in shares, according to EventVestor. This means that the company could repurchase up to 3.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s leadership believes its shares are undervalued. Tim Cook took over the role of CEO in 2011 shortly before the death of Steve Jobs.
Revenue vs. Earnings
- With $25 billion in service segment revenue in the most recent quarter, this continues to be a driver for Apple.
- Among them are Apple News (subscription news), Apple TV+ (subscription TV with original content), Apple Card (consumer credit card), and Apple Pay (mobile cashless pay feature).
- Apple is far from an upstart, but a cash-rich balance sheet, debt it can manage well, and a “wide moat” via its very devoted customer base all make this a stock that likely has a floor.
- Geode Capital Management LLC now owns 333,857,500 shares of the iPhone maker’s stock worth $77,542,863,000 after buying an additional 20,483,787 shares during the period.
- While the holiday quarter will reveal much more about how the devices are selling, Cook said in an interview with CNBC that iPhone 15 sales were “stronger than 14 in the year-ago quarter, and 16 was stronger than 15.”
Apple Inc designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. Apple released fiscal 2024 second-quarter results (for the three months ended March 30, 2024) on May 2, and shares of the company popped nearly 6%. The jump in Apple’s stock price was driven by the company’s better-than-expected numbers. It earned $1.53 per share on revenue of $90.8 billion, while analysts were expecting $1.51 per share on earnings on $90.5 billion in revenue. With $25 billion in service segment revenue in the most recent quarter, this continues to be a driver for Apple.
When asked about possible tariffs tied to the election results and any anticipated impact on Apple, which manufactures many of its devices in the country, Cook said he would punt on the question. He also said he didn’t want to comment on the DOJ’s antitrust lawsuit filed against Apple in March. The company also teased some early data points on iPhone 16 demand, which launched on September 20 toward the end of the quarter. Top institutional shareholders stay away from the scam! learn more in our london capital group review! of Apple include State Street Corp (3.86%), FMR LLC (2.41%), Geode Capital Management LLC (2.21%) and Berkshire Hathaway Inc (1.98%). Insiders that own company stock include Arthur D Levinson, Timothy D Cook, Jeffrey E Williams, Katherine L Adams, Deirdre O’brien, Luca Maestri and Chris Kondo.
© 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. Sign-up to receive the latest news and ratings for Apple and its competitors with MarketBeat’s FREE daily newsletter. The Motley Fool has positions in and recommends Apple and Berkshire Hathaway. YieldMax AAPL Option Income Strategy ETF offers high dividend yields, but suffers from NAV erosion how to create an app and underperformance compared to peers.
Based on its fiscal 2023 earnings of $6.13 per share, its report a scam and file a chargeback against usgfx bottom line could jump to $10.33 per share in five years. Apple has a five-year average forward earnings multiple of 28, which is a small discount to the tech-laden Nasdaq-100 index’s earnings multiple of 29.5. Berkshire Hathaway, led by celebrated investor Warren Buffett, has reduced its Apple stake by 13%. Moreover, analysts and investors are concerned that Apple has been late to capitalize on hot tech trends such as artificial intelligence (AI). Rivals such as Samsung are using AI to boost smartphone sales, while Apple’s latest results indicate that the demand for iPhones is waning. Apple is far from an upstart, but a cash-rich balance sheet, debt it can manage well, and a “wide moat” via its very devoted customer base all make this a stock that likely has a floor.
Two equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating, twenty-two have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $235.25. Apple (AAPL 0.59%) stock has delivered impressive gains to investors over the past five years, with shares of the tech giant rising close to 250% during this period and outpacing the S&P 500 index’s gains of 77% by a big margin. The “Magnificent Seven” stock’s robust rally can be attributed to the growing prominence of its high-margin services business, as well as a tremendous smartphone upgrade cycle triggered by the arrival of 5G smartphones.
Considering that Apple is now trading at 28 times trailing earnings, it can be bought at a discount to the Nasdaq-100 (using the index as a proxy for tech stocks). Additionally, Apple announced a share repurchase authorization worth a whopping $110 billion, the largest in U.S. history. Moreover, positive management commentary about the company’s prospects and CEO Tim Cook’s comments that Apple is investing in generative AI seem to have bolstered investor sentiment further. Goldman analyst Michael Ng expects the company to report $1.61 in earnings per share and $94.5 billion in revenue, which would represent year-over-year growth of 6%.