Analysts remain positive on Apple after WWDC Revelations

“Many investors and analysts alike — oh, and consumers of course — keep a close eye on every one of Apple Inc.’s new efforts ahead of, during and after the Worldwide Developers Conference (WWDC) each year,” Jon C. Ogg writes for 24/7 Wall St. “24/7 Wall St. has tracked multiple analyst reports. The rate of bullishness is not universal here, but many positive targets remain in place for higher upside in 2016 and 2017.”

“Apple’s consensus analyst price target was listed as $124.93 on Wednesday. This is down handily from the consensus target of $148 at the start of 2016 when 24/7 Wall St. issued its 2016 bullish and bearish outlook for the stock,” Ogg writes. “Again, many analysts have chimed in on the heels of the WWDC. Most see upside, even if their formal ratings have not changed significantly in any direction at all.”

Full rundown of the major analysts’ Apple outlooks here.

MacDailyNews Take: As we wrote back in April:

The second half of the year should look better than the first.

[Thanks to MacDailyNews Reader “Rainy Day” for the heads up.]

17 Comments

  1. AAPL was $98.95 on friday evening
    AAPL is now $97.01 wednesday evening

    That’s a 2% decline.

    If analysts or investors were truly excited about what direction Apple is going, then the WWDC should have been a significant bump to the share price. Seems like Cook is losing Jobs’ momentum fast.

    So any or all of these issues may be true (I think all of them have credibility):

    1) Apple’s mass appeal is declining due to the image that Apple is now pushing. Too hipster, too fashionista.
    2) Many of Apple’s technical advancements are non-value-added or clearly just a ploy to sell iCloud
    3) Many of Apple’s products are overpriced for the functionality they provide — or the new function that Apple pushes like 3D Touch is not a great upsell point and shouldn’t be required to do what the user really wants to do. The Apple Watch, despite all the health and time savings hype Apple gives it, is truly an accessory that replicates, and does not expand, the user experience.
    4) Reliability and user delight are not on par with past Apple performance. It doesn’t just work anymore, and Apple seems to be straying far away from intuitive interface guidelines. too much stuff hidden under swipes and force clicks, and the Mac is being dumbed down to swipe now too.
    5) The new initiatives seem more focused on narrow user segments rather than broad user groups, and seem to take away user functions as often as adding useful capabilities. Apple Music should never have been merged with iTunes, but it was forced on users very disrespectfully., and users did lose music because of it.
    6) Apple stuff is now advertised in vapid emotional marketing spots rather than in informative, straightforward terms (as was done with the Hodgman/Long ads) — that is, when Apple even bothers to advertise its products. Macs get no love in the advertising world, and is selling not based on MacOS superiority anymore, but rather multi-OS hardware capability.
    7) Hardware is intentionally user-unfriendly and non-upgradeable and under Cook, mostly stale. Apple TV still lags the competition in all measurable ways.

    Need we go on? Apple is a big, slow corporation now.

    1. Oh boy, Apple is gloom and doom again!.😂😜😁
      Bad bad bad Apple!.😜😁😁😁😁
      What we got to do with Apple, crush Apple to apple juice. 😜😜😜😜😜

    2. You say that like every bullet point you make is 100% verifiable truthy fact when most of it is simply your misguided opinion, completely lost in fantasy, *yawn*

      Apple has made me a lotta dough. If you’re ye of little faith then why are you here? Apple announced plenty of neat stuff at WWDC. Do I wish there was more? Certainly, being greedy. No one else is doing the overall great job Apple is doing but like every company could do better – so could you at your job. Put your trust in Google and Microsoft and see where that gets you.

      1. Thank you I really could not be assed to tell him that. i think we just need a ‘i refer you to the comment I made a minute.hour.day.week.month.year ago) button. If only they could actually contribute something worthwhile a real answer might be equally worthwhile to actually make. The irony that escapes them is that it was just the same, perhaps worse, when SJ was around but now instead of blaming him for it they just lazily refer to him NOT being around as the core problem in their inconsistent ramblings.

      2. Give it a rest, Peter. We all know that you’ll defend anything Apple does not matter what.

        Marketing is not about facts. The only facts we have are the port-mortem financials that result from Apple’s business with users. Last quarter, Apple sales were soft. AAPL valuation has been in decline for a year and WWDC didn’t do a thing to stop the slide.

        So if Paul lays out several reasons that consumers are not gravitating as strongly toward Apple as they did in the past, your personal attack doesn’t change the reality that some of what he posits must be true. I haven’t seen mass lineups at Apple stores trying to get the newest Apple product in years. Have you?

        I’ll add another: the wait time for an iPhone 5SE is absolutely ridiculous. For a supply chain genius, Cook has fumbled about every product rollout he’s done.

        Maybe it’s time to admit that Apple leadership is losing its mojo.

        1. I would suggest you not only “give it a rest” as well but make it a long slumber.

          Your analysis is on the same shaky strawman specious ground as Paul’s. Are you related?

          Maybe it’s time to admit you’re simply a misguided goofball who tries to link disparate thoughts into a cohesive argument & failing miserably. You also generously speak of supply chains not having a clue how to maintain or run one.

  2. The absolute truth of stock markets, here and abroad, is that the equities they sell are–in no small part–priced by an ephemeral and oft-capricious popularity with investors– NOT FINANCIAL UNDERPINNINGS. Witness:

    AAPL, representing one of the most profitable corporations in the history of the world, is trading today at 10x earnings. Chipotle (CMG), experiencing a horrific 2016 by anyone’s measure, is trading today at 37x earnings. Amazon (AMZN), having JUST turned profitable–EVER!–is trading at 294x earnings. OMG.

    If there were ANYWHERE else to place our hard-earned money for the immediate future, my family and I would put it there in a heartbeat. But, alas. we are hostage to either the DOW, NASDAQ, DAX, FTSE, et al . . . or our mattress. The sad fact is that one must just suck it up and live with it.

    1. Your point is completely correct, Apple is being undervalued.

      I will point out however that Amazon is not valued by earnings because they are still investing everything back into growth and growing very fast. If you want an objective financial metric the two to look at are: (1) Revenue/Earnings ratio and (2) Growth rate. They are killing it on both. Also, they keep having to drop the prices on their cloud back end services (which run many companies businesses) because the margins keep souring up. I could go on, their strategy of becoming the retail highway of the world is smarter than anything any other retailer is doing.

      And I feel just as positive about Apple for very different reasons.

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