BofA Securities: 10 reasons to buy Apple stock

BofA Securities analyst Wamsi Mohan in a new note to clients lists 10 reasons to buy Apple stock, after the company steamrolled the Street by posting blowout Q3 earnings on Thursday:

1. Product revenue growth despite COVID-19 related store closures and stay at home orders during fiscal third quarter reaffirms our confidence in installed base stickiness

1. Stimulus benefit shows continued price elasticity of demand for iPhones

2. New iPhone delay creates weakness in September but upside to the December quarter

3. Management expects strong non-iPhone product performance to sustain into fiscal fourth quarter

4. iPad and Mac installed bases attracting new users and growth continues to outperform expectations

5. Services grew slower than anticipated but margins have upward bias

6. Apple saw new all-time revenue records in the App Store, Apple Music, Video, and Cloud services

7. Capital returns strong (returned $21 billion to shareholders in calendar first quarter with $15.9 billion in buybacks, $3.7 billion in dividends)

8. Apple announced a 4-for-1 stock split

9. Balance sheet remains solid with net cash of $81 billion and strong free cash flow generation

MacDailyNews Take: That’s a very good list of reasons to buy Apple stock to which we’d add “Future product pipeline, including game-changing Apple AR smartglasses.”