Apple: the market trusts everything to the new iPhone 14

Apple: the market trusts everything to the new iPhone 14

Apple posted record quarterly revenue in July for its fiscal third quarter, which ended in June. We are talking about 83,000 million dollars, with an increase of 2% in them compared to the same period of the previous year. Of them, more than half, 40,665 specifically, are due to the sale of their iPhones around the world, mainly in the United States. Only services, with more than 19,600 million, overshadow the 7,382 million revenue that the firm claims for sales of its Mac.

And at that point, in their presales before their launch today, they were not at the level that was expected. According to data from cnet.com, pre-orders are lower than its previous model. And it is that the good thing, they say, is waiting and it seems that the long waits of up to a previous month are things of the past, so the 14 and 14 plus models will be available right now, with the arrival of the model on the market.

As for recommendations on the value after the launch, from Tipranks the average target price reaches $183.56 per share, which implies that it gives it a potential upside of just over 18% on Wall Street. 28 are the analysts who collect the consensus, with 22 who bet on buying, 4 on holding and one more on selling, with which the average advice is strong purchase on Apple shares.

Meanwhile, from Barclays, they leave their recommendation on the value at the same as the market with a target price of 169 dollars per share, as their analyst Tim Long understands that, although it is possible that the iPhone manufacturer is producing below the seasonal level usual, it is possible that its evolution is placed better than expected.

While the value in the market shows the effect of some important drops in the last month, without forgetting that of last Tuesday, which has been diluted by the good reception of the iPhone in the market.

Although that day it lost more than 150,000 million in market capitalization, Apple rose 0.55% in the last week, with cuts of almost 11% in the month, to recover close to 20% quarterly. So far this year, as we can see in the graph of The Wall Street Journal, its downward performance is 12.5% ​​compared to the global technology sector, which has lost no less than 68% so far this year. .

From Bernstein Research, its analyst Toni Sacconaghi considers that Apple has a target price of 170 dollars for each of its shares while its recommendation in market perform, something like neutral on the value. He considers that now the nerve center of its performance is focused on the iPhone 14 and is cautiously positioned regarding its sales, because it expects them to fall by 4% in 2023. He also estimates that this will be the predominant despite the increase in the weight of the rest of services in the Cupertino company.

And it is that he considers that Apple’s valuations remain high compared to other moments in history and with their counterparts in the technology sector. To do this, he indicates that, on average, in the three months after the launch of its iPhone, it has not had a superior run in the market.

In addition, he puts the focus decisively on his results for the fiscal year of 2023, because he estimates that the average Wall Street forecasts are very high. Its below-average levels as it expects $399 billion in revenue with annual earnings per share of $6.26 per share.

A $185 price target is what Apple gives UBS in its latest value report. With advice to buy, despite the fact that iPhone shipments to China were worse than expected in July, as analyst David Vogt comments, although the market share of local Chinese suppliers has increased very little before the arrival of the iPhone14.

By the way, that in Apple’s “must” we should also point out that it has just been crowned as the value with the most bearish bets. dethroning Tesla who had held his position since the start of the pandemic. According to S3 Partners, the short interest on Apple has reached 18.4 billion while that of Elon Musk’s company remains at 17.4 billion.

Samuel Edwards
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