Apple: a rebound takes hold, Wedbush puts fears into perspective
January 23, 2025 at 10:51 am EST
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On Thursday morning, Apple shares were among the biggest gainers in the Dow Jones index on Wall Street, with Wedbush believing that the fears that have recently weighed on the stock are exaggerated.
At 10.25 a.m. (New York time), the Apple stock was up 1.3%, compared with a 0.2% rise for the Dow.
We believe that the panic and excitement surrounding Apple ahead of the release of its results for the three months to the end of December, due after the close next Thursday, is excessive," says Wedbush Securities in a note.
Our recent checks on iPhone sales in China are mixed, if not disappointing, but the downturn in activity in the region seems 'manageable' to us, and growth in the US and the rest of the world should enable Apple to meet market forecasts for the quarter to the end of December', the broker adds.
Wedbush also believes that Apple should post a "solid" quarter in services, an activity it considers crucial to the evolution of the technology group's share price.
The broker therefore maintains its "outperform" opinion on the stock, with a price target of $325.
Prior to yesterday's rebound, Apple had lost 16% of its value in one month, amid concerns about iPhone sales in Q4, particularly in China.
With today's rise, the Cupertino, California-based company regains its position as second-largest market capitalization with a valuation of $3,396 billion, ahead of Microsoft ($3,295 billion) but behind Nvidia ($3,565 billion).
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Apple Inc. specializes in the design, manufacture and marketing of computer hardware and music supports. Net sales break down by family of products and services as follows:
- telephone products (51.4%): iPhone brand;
- peripheral devices (9.5%): screens, storage systems, printers, video camera, memory cards, server, switches, etc.;
- computers (7.7%): laptops (MacBook, MacBook Air and MacBook Pro brands) and PCs (iMac, Mac mini, Mac Pro and Xserve);
- music support (6.8%): music readers iPod and iPad and accessories;
- other (24.6%): software, maintenance service and Internet access service, etc.
Net sales are distributed geographically as follows: Americas (42.7%), China/Hong Kong/Taiwan (17.1%), Japan (6.4%), Asia/Pacific (7.9%) and Europe/India/Middle East/Africa (25.9%).