Palantir shares rise 5% premarket as AI-fueled demand powers annual guidance raise
On Tuesday, JPMorgan offered a positive outlook on Apple Inc. (NASDAQ:AAPL) shares, maintaining an Overweight rating and a $270.00 price target. The technology giant, currently valued at $3.5 trillion, continues to demonstrate its market dominance. The firm’s analysis was based on data tracked by Sensor Tower, which showed that Apple’s App Store revenue in January saw a month-over-month increase of 2.7%, surpassing the historical average growth of 2.3% typically seen from December to January. According to InvestingPro analysis, Apple’s current valuation metrics suggest the stock is trading at premium multiples across several metrics, with comprehensive valuation insights available in the Pro Research Report. This growth also contributed to an acceleration of year-over-year revenue trends, with a 17.6% increase in January compared to 13.1% in December 2024.
The sustained revenue growth is seen as a positive indicator for Apple’s services sector, particularly when considering the company’s guidance for low-double-digit year-over-year growth for its services in the second fiscal quarter of 2025, which ends in March. This expectation comes despite the incremental foreign exchange headwinds estimated between 200 to 250 basis points.
However, the report also noted a discrepancy in App Store downloads, which did not meet the typical seasonal trends for January. Downloads increased by 2.6% month-over-month, a figure lower than the 6.0% increase observed in December 2024, and beneath the historical average increase of 6.3% from December to January. On a year-over-year basis, App Store downloads saw a 6.1% rise in January, which is a decrease from the 7.5% year-over-year growth recorded in December.
The data suggests that while download numbers have not kept pace with historical trends, the revenue generated from the App Store remains robust and is trending upward. This performance could signal potential modest upsides to Apple’s services revenue guidance for the upcoming fiscal quarter. With an overall financial health score rated as "GOOD" by InvestingPro, and 13+ additional exclusive insights available to subscribers, investors can access comprehensive analysis of Apple’s financial position and growth prospects through the detailed Pro Research Report, which provides expert analysis of what really matters for this tech giant.
In other recent news, Apple Inc. has unveiled Apple Invites, a new application aimed at simplifying the creation and management of event invitations for iPhone users. The app integrates with other Apple services like iCloud Shared Albums and Apple Music playlists, and is now available for free on the App Store for all iPhone models running iOS 18 or later.
In the financial arena, Evercore ISI has maintained its Outperform rating on Apple stock, with a target of $260. The firm’s decision followed Apple’s financial results, which showed a revenue of $123.4 billion and earnings per share of $2.40 for the December quarter. The company’s services sector saw a robust growth of 14%, with iPads and Macs also experiencing significant sales increases.
On a similar note, Itau BBA has maintained its Market Perform rating on Apple stock with a consistent price target of $254.00. The firm cited concerns about Apple’s growth prospects and competitive challenges, particularly in China, as key factors in their assessment.
Needham analysts have also maintained a Buy rating on Apple stock, with a price target of $260.00. Apple’s December quarter saw a record 2.35 billion active devices and surpassed 1 billion subscribers. Despite a slight disappointment in iPhone revenue, Needham remains bullish on Apple’s continued growth and market presence. These are among the recent developments concerning the tech giant.
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