Technology
Friday, May 3rd, 2024 4:06 pm EDT
Key Points
- Apple shares surged over 6% following better-than-expected second-quarter earnings and the announcement of the largest-ever stock buyback program, potentially marking the best day for Apple shares since November 30, 2022.
- The tech giant disclosed plans to repurchase $110 billion of its shares, exceeding its previous buyback endeavors. Despite a 4% decline in overall sales and a 10% drop in iPhone sales year over year, Apple reported earnings of $1.53 per share on revenue of $90.75 billion, surpassing analysts’ estimates.
- Analysts from Bank of America, JPMorgan, and Morgan Stanley reaffirmed their bullish outlook on Apple stock, with price target increases reflecting confidence in the company’s growth prospects driven by factors such as iPhone growth in Mainland China, expectations of generative artificial intelligence features for the iPhone, and upcoming product launches.
Apple shares surged more than 6% on Friday following the company’s announcement of better-than-expected second-quarter earnings and the initiation of the largest-ever stock buyback program in U.S. history. The tech giant revealed plans to repurchase $110 billion of its shares, surpassing its previous buyback efforts. Despite an overall 4% decline in sales and a 10% drop in iPhone sales year over year, Apple reported earnings of $1.53 per share on revenue of $90.75 billion, exceeding analysts’ estimates. Apple CEO Tim Cook attributed the quarterly sales dip to challenging comparisons with the previous year. Analysts from Bank of America, JPMorgan, and Morgan Stanley reaffirmed their bullish outlook on Apple stock, with price target increases reflecting confidence in the company’s growth prospects. They anticipate strong performance driven by iPhone growth in Mainland China, expectations of generative artificial intelligence features for the iPhone, and the upcoming product launch event. Despite the modest revenue growth, analysts foresee higher revenue opportunities in the future, buoyed by product cycles and technological advancements, particularly in artificial intelligence, signaling optimism for Apple’s trajectory in the market.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/03/apple-stock-on-pace-for-best-day-since-2022-after-earnings-beat.html
