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Apple Just Passed $5 Trillion. Here’s What Comes Next.
Yahoo Finance • • business
Key Points:
- Apple (AAPL) is rated a BUY by 24/7 Wall St. with a price target of $395.69, implying nearly 15% upside, supported by 10 consecutive earnings beats and a 27% gain year-to-date.
- Despite slower revenue growth (16.4%) compared to peers Microsoft (17.7%) and Alphabet (24.2%), Apple trades at a higher forward P/E of 35x versus 25x and 23x, respectively, reflecting its premium valuation.
- CEO Tim Cook cited a "100-year flood" in memory pricing, leading to lowered gross margin guidance of 47-48% for the September quarter and fueling a bear case price target of $336.
- Apple recently surpassed a $5 trillion market valuation, boosted by strong iPhone 17 demand and new smart home products, while supply constraints and AI initiatives like Siri upgrades offer bullish catalysts.
- Despite the positive outlook, 24/7 Wall St.'s analysts did not include Apple in their newly released Top 10 Stocks To Buy Now report, suggesting other stocks currently present better investment opportunities.
