Apple's stock is more excited than a pre-teen who successfully convinced their parents to purchase a smartphone. Yesterday, the company that manufactures iPhones reached an unprecedented peak following reports of robust worldwide interest in the iPhone 17, prompting another financial institution to enthusiastically endorse Apple's shares.
TL;DR
- Apple's stock reached an all-time high due to strong iPhone 17 sales.
- iPhone 17 sales in the US and China exceeded iPhone 16 sales by 14%.
- Analysts question if the iPhone 17 sales surge can be sustained.
Shares of Apple climbed nearly 4% to close at ~$262, surpassing the company’s previous all-time high of $259 from last December:
- Counterpoint Research stated over the weekend that the iPhone 17 series surpassed the iPhone 16 series in sales by 14% in both the US and China during their initial 10 days on the market.
- Loop Capital elevated Apple's rating yesterday from a “hold” to a “buy,”, increasing its price objective from $226 to $315. The previous day, Evercore ISI reinstated $AAPL to its “Tactical Outperform List”, having previously removed it in early 2024 due to weak revenue forecasts.
This is a welcome autumn uplift for Apple, following a challenging year marked by a lukewarm reception to the iPhone 16, primarily due to delays in its AI capabilities, and fluctuating concerns over tariffs. Prior to yesterday, its stock had only seen a ~3% increase year-to-date, positioning it as the second-lowest performer among the Magnificent Seven, trailing only Amazon.
Still… some analysts aren’t sure Apple can maintain the iPhone 17’s initial sales surge. Based on usual purchase cycles, it may have simply been time for pandemic-era phone buyers to upgrade, Sherwood reported.—ML
This report was originally published by Morning Brew.