Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Evercore ISI has reiterated an Outperform rating on Apple (NASDAQ:AAPL) with a price target of $290.00, citing expectations for the company to exceed consensus estimates for the September quarter. The tech giant, currently trading at $252.29 and commanding a market capitalization of $3.74 trillion, is showing strong momentum as it approaches its earnings release on October 30. According to InvestingPro analysis, Apple’s current valuation appears stretched, with a P/E ratio of 38.4x.
The research firm believes Apple is positioned to deliver results above current market expectations and potentially guide higher for the December quarter. This optimism stems from iPhone data points suggesting the current refresh cycle may outperform typical patterns, with lead times for the base iPhone 17 exceeding October levels from last year. The company’s strong financial health, evidenced by an InvestingPro Financial Health Score of 2.85 (rated as GOOD), supports this positive outlook. With revenue of $408.62 billion in the last twelve months, Apple continues to demonstrate its market dominance.
Survey work conducted by Evercore ISI indicates strong demand, with an above-average number of respondents planning to purchase a new iPhone this year. Current consensus revenue projections imply sequential growth of 8.1%, in line with the five-year average September quarter growth of 7.9%. For deeper insights into Apple’s valuation metrics and growth potential, investors can access comprehensive analysis and 14+ additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks.
The firm also highlights potential for continued double-digit Services growth following the resolution of several headwinds during the quarter, including Department of Justice issues with Google and the Apple versus Epic legal battle. For the December quarter, Evercore ISI suggests Apple could guide ahead of street expectations, which currently project quarter-over-quarter growth of 28.3% versus typical seasonality of 43%.
While iPhone Air performance appears softer than initial expectations, the recent launch of online orders in China may provide a positive tailwind for the December quarter, as initial delivery time data reflects stronger demand in China relative to other regions at launch.
In other recent news, Apple has unveiled its new M5 chip, boasting a fourfold increase in AI performance over its predecessor, the M4 chip. The chip, built with third-generation 3-nanometer technology, features a redesigned 10-core GPU with Neural Accelerators, enhancing both AI applications and overall computing capabilities. Additionally, Apple announced the launch of its upgraded Vision Pro headset, which will feature the M5 chip, a sharper display, and improved battery life. The headset is set to hit stores on October 22, with pre-orders already available in several countries.
In another development, Apple is reportedly working on its first touch-screen MacBook Pro, slated for release between 2026 and 2027. The new model, internally code-named K114 and K116, will have a thinner and lighter design and will be powered by the upcoming M6 processors. Meanwhile, BofA Securities has reiterated its Buy rating on Apple stock, citing stable iPhone 17 shipping times as a positive indicator. Lastly, Apple is currently investigating outages affecting its Apple TV+ and Apple Music services, with thousands of users reporting issues.
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