Private investors have had enough of meme stocks and are returning to blue-chip and broad market funds. Among the most popular assets were Apple shares. This was reported by the Wall Street Journal, citing research by VandaTrack. What attracts investors so much, what is Apple stock price forecast, and is it too late to go into Apple investments now?
Apple’s quarterly report
On April 28, the company released a decent Q2 2022 fiscal year report, but AAPL’s after-hours stock price fell by 2%.
Apple also warned that its AAPL stock price dividend will suffer in the current quarter due to a shortage of components.
What are the figures?
Apple’s figures compared to the same quarter last year and analysts’ expectations:
- total revenue – 97.3 billion (+9%), expectations – 93.9 billion dollars;
- earnings per share – $ 1.5 (+ 9%), expectations – $ 1.4.
As in the previous quarter, sales increased in all categories except iPad:
- iPhone – 50.6 billion (+ 5.5%), forecast – 47.9 billion dollars;
- iPad – 7.6 billion (-2%), forecast – 7.1 billion dollars;
- Mac – 10.4 billion (+15%), forecast – 9.2 billion dollars;
- accessories – 8.8 billion (+12%), forecast – 9 billion dollars;
- services – 19.8 billion (+17%), forecast – 19.7 billion dollars.
Tim Cook’s Apple stock price prediction 2025
The head of the company, Tim Cook, during the report, noted the high demand for the iPhone 13, as many changed old models to new ones. He also said that among the buyers there were many who used Android smartphones before.
But iPad sales have fallen again, just like the AAPL stock price in real-time. According to Cook, the reason is still the same: “very serious supply problems.”
Services — App Store, Apple Music, Apple Pay, and others — are still a high-margin and fast-growing business for the company. Services sales were in line with expectations this quarter, although they were 3% to 8% better than forecast earlier. Apple explained that sales dynamics are “unusual” because coronavirus restrictions are being lifted and reintroduced.
It is during quarantine that sales of Apple services grow the fastest, as people spend most of their time at home. For example, a year ago, sales in this segment increased by 30%.
Since the beginning of 2020, Apple has cited uncertainty and is not forecasting quarterly sales. This time, the company added that factories are operating with restrictions due to COVID-19, and the shortage of components will cost it $4-8 billion in revenue. AAPL’s after-hours stock price has already reacted to this circumstance.
Apple also approved a $90 billion share buyback program. The company spent the same amount on buyback in 2021.
After the report, Apple shares sank 2% to $160. Shares are down 10% since the start of the year, in line with the S&P 500 broad market index.
Since thatwe can assume that Tim Cook is expecting a decline in the AAPL stock option prices.
What is the AAPL stock price today?
The AAPL stock price in real-time is $148. Talking about the AAPL pre-market stock price, it was $148,3.
What’s Apple stock’s target price?
Recently, the corporation has concentrated on the direction of vertical integration, that is, its own production of basic components. The first signs are processors for A15 smartphones and M1 computers.
Experts expect Apple to switch to its own 5G modems in the near future. Own components allow you to increase the margins of products and reduce dependence on third-party suppliers.
According to Goldman Sachs, in the previous quarter, the corporation lost $6-10 billion in revenue due to supply chain disruptions. But this year the problem will not be so acute, and Apple predicts that this year will be the most financially successful in the history of the corporation. Undoubtedly this will also affect the AAPL expected stock price.
Apple remains a trendsetter with a huge loyal following. For example, smartwatches and wireless headphones have gained real popularity after they were launched by the company from Cupertino.
Attempts by competitors to introduce breakthrough technologies are often rejected by the mass audience. For example, folding smartphones from Samsung or glasses from Google. Therefore, the long-term plans of the company are of particular interest especially when the AAPL daily stock price does not inspire investor optimism.
AAPL stock price prediction
Please note that the forecasts are adjusted once a day, taking into account the change in the price of the previous day and its closing point.
To date, analysts have a target price for Apple stock. It is $188.92. Today the 200-day moving average is the resistance level ($159.49). 50-day moving average – resistance level ($159.09).
According to the investment app Multi Invest, the median consensus estimate from 41 analysts is for Apple shares to rise 11.5% year-over-year. According to finance.yahoo’s forecast, shares will rise by 10% over this period.
JP Morgan Chase specialists are also optimistic about the AAPL stock price now, according to which Apple is “the best choice this year”, and the corporation’s shares will grow by more than 21%. Citi analyst Jim Suva supports the view on the expediency of buying these shares, he expects growth of 15%.