Oracle stock falls after report reveals thin margins in AI cloud business
Investing.com - Evercore ISI has reiterated an Outperform rating and $250.00 price target on Apple (NASDAQ:AAPL) following Judge Mehta’s ruling in the Department of Justice case against Google. According to InvestingPro data, Apple currently trades at $237.88, with analyst targets ranging from $175 to $300, reflecting the market’s mixed outlook on this prominent technology hardware player.
The research firm views the ruling as a "near best case scenario" for Apple, as the company can continue to collect traffic acquisition cost (TAC) payments from Google and other search providers for default placements, though exclusive arrangements will not be permitted.
Under the ruling, these search distribution deals must be negotiated annually, but Evercore ISI believes the "status quo stays intact for the foreseeable future" regarding Apple’s search-related revenue streams.
Evercore ISI notes that the data sharing requirements outlined in the ruling could potentially create further upside for Apple, along with the company’s ability to explore "multi homing" as a way to segment access points separately.
The firm maintains that Apple’s path to low-teens services growth remains intact despite the changes resulting from the Google antitrust case.
In other recent news, Apple is preparing for its "Awe Dropping" event, where it is expected to unveil the iPhone 17 lineup and introduce the iPhone Air as a replacement for the Plus model. UBS has maintained its Neutral rating with a $220.00 price target for the company, while HSBC also reiterated its Hold rating with the same price target. Meanwhile, Jefferies has raised its price target for Apple to $205.82, citing factors such as tariff relief and anticipated developments in AI-driven services. In legal matters, Cerence Inc has filed a patent infringement lawsuit against Apple, alleging unauthorized use of six patents related to text input and voice command technologies. Additionally, MoffettNathanson has upgraded Apple’s stock from Sell to Neutral, highlighting that several key risks to the business have diminished. These developments come as Apple continues to navigate a complex landscape of technological innovation and regulatory challenges.
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