apple Shares soared more than 6% on Friday morning after the company announced better-than-expected second-quarter profits and the largest share buyback program in history. If this rally is sustained through market close, it would be the best day for Apple stock since November 30, 2022.
The iPhone maker announced Thursday that it will buy back $110 billion of its own stock, which would exceed Apple’s previous buybacks and be the largest in U.S. history. The company posted earnings of $1.53 per share on sales of $90.75 billion, beating analysts’ expectations for earnings of $1.50 per share and sales of $90.01 billion, according to LSEG.
However, overall sales fell 4% year over year during the quarter, and iPhone sales fell 10%, indicating weak demand for the latest generation of smartphones. Apple CEO Tim Cook told CNBC that quarterly sales were difficult to compare with the same period last year.
Analysts at Bank of America reiterated their buy rating on Apple stock in a note to investors on Friday, calling it a top pick and raising their price target to $230 from $225, adding that the company has a long-term investment in artificial intelligence generated for the iPhone. I wrote that I expected to develop intelligence functions. this year.
“Apple is expanding iPhone sales in mainland China, estimate revisions are turning positive, and GenAI’s capabilities will drive a strong upgrade cycle,” they wrote.
JPMorgan analysts raised their price target on Apple from $210 to $225 on Thursday, while maintaining an Overweight rating, citing “resilient” year-over-year earnings for iPhone and a lead over Apple products. pointed out, “We can expect a tailwind for the iPad due to the upgrade cycle.” Next week is the release event.
“Overall, while modest year-over-year revenue growth may not be an ideal outcome, it allows tailwinds from product cycles across hardware devices and the AI-driven smartphone cycle to further accelerate growth.”
Morgan Stanley analysts maintained an overweight rating on Apple on Friday, citing the company’s quarterly results, year-over-year growth in iPhone shipments to China in March, share buybacks, and hints at upcoming AI updates. The price target was raised from $210 to $216. .
“We can’t help but get even more bullish here,” they wrote.
—CNBC’s Michael Bloom contributed to this report.