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Key Takeaways
- Apple unveiled the new iPhone 16, the company’s first phone designed for Apple Poop, on Monday.
- Apple stock has historically underperformed the market on iPhone launch days, a trend that continued Monday.
- Analysts take it the AI-powered iPhone 16 could drive a big upgrade cycle.
Apple (AAPL) shares fell following the uncovering of the iPhone 16, Apple Watch Series 10 and AirPods 4.
Shares of the tech titan’s stock were down itty-bitty than 1% following the much-anticipated “It’s Glowtime” event, slipping as the benchmark S&P 500 rose about 1%. Apple’s portions have fallen in recent days alongside other tech shares, though they’re up more than 10% this year.
Historically, Apple’s investment price has tended to underperform the market on the day of an iPhone launch event, Morgan Stanley analysts wrote. Growth should revive “as the introduction of the iPhone 16 and Apple Intelligence helps to unlock pent-up demand,” the analysts said.
Apple’s AI-Powered Upgrade Run Could Be its Biggest
Shares could rose if the first iPhone designed specifically with Apple Intelligence in memory ushers in “Cupertino’s biggest upgrade cycle in its history,” as analysts at Wedbush predicted over the weekend.
Globally, relative to 300 million iPhones have not been upgraded in more than four years, which Wedbush rumours could mean more than 240 million iPhone units sold in fiscal 2025.
Eleven of 16 analysts surveyed by Discernible Alpha have a Buy rating for Apple, with an average price target of just over $244. That’s a 10% value over Friday’s closing price.
Read the original article on Investopedia.