Thursday, May 30, 2024

Apple Has 3 Massive Growth Opportunities With ‘Another Decade Of Solid Performance,’ Analyst Says By Benzinga

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© Reuters. Apple Has 3 Massive Growth Opportunities With ‘Another Decade Of Solid Performance,’ Analyst Says

Apple (NASDAQ:), Inc. (NASDAQ: AAPL) reported on Thursday forecast-beating results for its September quarter, and it came as a welcome relief among some high-profile tech disappointments.

Loup Funds co-founder Gene Munster attributed the tech rout seen in the aftermath of some disappointing tech earnings to investors placing more value on “today’s performance” than on “estimates of future growth.”

With Apple, investors buy both performance and potential, Munster said. Cupertino reported 8% revenue growth, and 4% earnings growth, and effectively guided December quarter revenue and earnings in line with expectations, he noted.

See also: Apple Analyst Continues To Recommend Owning Stock Despite Reducing Price Target (NYSE:) — Here’s Why

“Consumers need Apple’s products,” the venture capitalist said, adding that its products, once thought of as a luxury, have become a necessity. This is evident from over one billion users upgrading their devices on a continuum, he noted.

“For consumers, the decision to upgrade has become less about getting the latest features and more about maintaining an operable and reliable smartphone,” Munster said.

Although Apple refrained from discussing optionality on the earnings call, Munster said the company has growth optionality in three potential addressable markets, namely health, augmented reality and auto.

“One of these three opportunities will likely come to fruition and set up the company for another decade of solid performance,” he added.

Apple climbed 7.56% on Friday before settling at $155.74, according to Benzinga Pro data.

Read Next: How to Buy Apple (AAPL) Stock

Photo: Courtesy of Fortune Photo on flickr

Latest Ratings for AAPL

Mar 2022 Barclays (LON:) Maintains Equal-Weight
Feb 2022 Tigress Financial Maintains Strong Buy
Jan 2022 Credit Suisse (SIX:) Maintains Neutral

View More Analyst Ratings for AAPL

View the Latest Analyst Ratings

© 2022 Benzinga does not provide investment advice. All rights reserved.

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