Apple’s better-than-expected Q322 earnings report helped assuage investors’ worries about how a slowdown in consumer demand would impact the compnay. As sentiment on Apple turns positive, it may be time to buy the stock, Citi analysts say.
“We would characterize this quarter as a major bullish statement on iPhone demand and Cupertino’s [the location of Apple’s main office] ability to navigate a supply chain shortage in an impressive performance,” wrote Wedbush analyst Daniel Ives on Friday.
Citi analyst Jim Suva agreed, saying he continued to see several positive drivers for Apple’s products and services in the months ahead, even though macro challenges will persist.
Suva outlined five reasons to buy the stock.
1. iPhone 14
2. Expansion of Services Segment
3. New Product Launches [AR/VR headset and “Apple Car” by 2025]
4. Demand Shift Toward Premium Products
5. Stock Buyback Program will keep boosting the shares in the long run
MacDailyNews Take: The “Apple Car” by 2025 might be quite optimistic, but Suva’s other points are solid.
It’s important to remember: Apple customers are those least affected by rampant inflation. It’s the Android and Wintel PC bottom-feeders who will be most affected by lower-end consumers pulling back discretionary spending as prices for necessities eat into their budgets.
Superior demographics, coupled with Apple’s massive mountain of cash, make Apple a safe harbor in a turbulent market.
We would characterize this quarter as a major bullish statement on iPhone demand and Cupertino’s ability to navigate a supply chain shortage in an impressive performance. — Wedbush analyst Daniel Ives on Friday.
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What effect do you think the war in Taiwan will have on AAPL?
G-Spank: Excellent question. Contingency planners at TSMC, Foxconn and Apple must be burning the midnight oil.
We’ll see.