ION expands ETF trading capabilities with Tradeweb integration
Investing.com - Goldman Sachs maintained its Buy rating and $320.00 price target on Apple (NASDAQ:AAPL) despite slowing App Store spending growth. The target represents a 12% upside from Apple’s current price of $286.19, which is trading near its 52-week high of $287.40.
November 2025 App Store spending increased 6% year-over-year according to Sensor Tower data, decelerating from October’s 9% growth rate. The slowdown was primarily driven by the Games category, which represents 44% of total App Store spending and declined 2% year-over-year, compared to 3% growth in October. This mirrors Apple’s overall revenue growth of 6.43% over the last twelve months. InvestingPro analysis shows Apple trading at a P/E ratio of 38.42, suggesting premium valuation despite the growth deceleration.
Geographically, four of Apple’s top five markets—the United States, Japan, United Kingdom, and Canada—which collectively account for 52% of total App Store spending, showed sequential deceleration in growth rates.
App Store spending growth has halved since July 2025, dropping from 12% to 6% year-over-year, raising concerns about potential disruption from off-app payment options. This growth rate falls below Apple’s guidance for first-quarter fiscal 2026 Services revenue, which projected growth in line with fiscal 2025’s 14% increase.
Goldman Sachs expects Apple’s Services guidance to be supported by faster growth in other service categories, noting that fourth-quarter fiscal 2025 Services revenue accelerated to 15% year-over-year despite App Store deceleration, with growth acceleration in iCloud+, AppleCare+, Apple Music, and Apple Pay.
In other recent news, Apple is projected to have a record year in 2025, with shipments expected to rise by 6.1% to 247 million units, fueled by strong demand for its iPhone 17 series. The company faces a potential market decline in 2026, as global smartphone shipments are anticipated to fall by 0.9% due to rising memory chip prices, according to IDC. Loop Capital has increased its price target for Apple to $325, maintaining a Buy rating, based on adjustments in iPhone unit sales and average selling prices. Meanwhile, Wedbush has reiterated its Outperform rating and $320 price target on Apple following leadership changes in its AI division. John Giannandrea, Senior Vice President for Machine Learning and AI Strategy, is stepping down but will stay on as an advisor until spring 2026. In regulatory news, Germany’s antitrust authority is reviewing Apple’s App Tracking Transparency Framework to address competition concerns. Additionally, Apple may face class action lawsuits in the EU after a court ruling allows Dutch App Store users to collectively sue over allegedly high commissions. These developments are part of the ongoing scrutiny Apple faces in various markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.