Apple CEO Cook attended the China Development Forum held in Beijing on March 24, 2024.
Pedro Pardo | AFP | Getty Images
apple Shares of the company rose more than 6% on Friday morning after the company reported better-than-expected second-quarter earnings and its largest-ever stock buyback program. If the rally continues through the close, it will be Apple’s best day since November 30, 2022.
The iPhone maker announced Thursday it would buy back $110 billion in stock, the largest buyback in U.S. history and surpassing Apple’s previous buybacks. The company reported earnings of $1.53 per share on revenue of $90.75 billion, beating analysts’ expectations of earnings of $1.50 per share on revenue of $90.01 billion, according to LSEG.
However, overall sales fell 4% this quarter, and iPhone sales fell 10% year-on-year, indicating weak demand for the latest generation of smartphones. Apple CEO Tim Cook told CNBC that sales in the quarter were difficult compared with the same period last year.
Bank of America analysts reiterated a buy rating on Apple stock, calling it a top pick and raised their price target to $230 from $225 in an investor note on Friday, writing that they expect the company to trade for The iPhone launches artificial intelligence capabilities this year.
“Apple is building iPhones in mainland China, estimate revisions are turning positive, and GenAI features will drive a strong upgrade cycle,” they wrote.
On Thursday, J.P. Morgan analysts maintained an overweight rating and raised their price target on Apple to $225 from $210, noting that iPhone revenue was “resilient” year-over-year and that “an upgrade cycle is expected to drive iPad development” ahead of Apple product launches ”Activities will be launched next week.
“All in all, while modest year-over-year revenue growth may not be ideal, growth can now be further driven by product cycles across hardware devices as well as the AI-led smartphone cycle,” they wrote.
Morgan Stanley analysts maintained an overweight rating on Apple and raised their target price to $216 from $210 on Friday, citing the company’s quarterly results, year-over-year growth in iPhone shipments to China in March, and the stock’s recovery. purchases and hints of upcoming updates to artificial intelligence.
“It’s hard not to become more optimistic,” they wrote.
CNBC’s Michael Bloom contributed to this report.
About The Author
