Why Apple shares haven’t moved much after iPhone 16 reveal
Apple’s highly anticipated artificial intelligence feature, Apple Intelligence, took center stage at the company’s annual iPhone event. However, investors may be disappointed by the slow rollout of the most interesting parts of Apple Intelligence. While the iPhone 16 will be available for purchase on September 20th, the necessary software update for Apple Intelligence won’t be accessible to U.S. English users until October.
Madison Mills for Yahoo Finance:
The disconnect between the hardware and software may have been one reason why Apple stock didn’t move much on the news. Shares of the iPhone maker were down by about 0.9% during the company’s “Glowtime” presentation in Cupertino, Calif., and they were up less than 1% over the three days since the event.
“No huge surprises,” Goldman Sachs senior equity research analyst Michael Ng told Yahoo Finance about the Apple iPhone unveiling. “I think it was straight down the fairway,” he said at the Goldman Sachs Communacopia and Technology Conference on Tuesday.
Ng, who has a Buy rating on Apple, said he’s “constructive” on the stock and that its performance is par for the course on iPhone rollout days.
Apple stock tends to perform better a month or even two months out from launch days. Last year, shares of Apple were off by 1% a day after the iPhone 15 was announced. 60 days later, the stock was up 6%, according to Bank of America data. In 2019, shares were up 3% the day after Apple revealed the iPhone 11 and gained 20% over the next two months.
MacDailyNews Note: Goldman Sachs’ Ng predicts a 25.23% potential upside for Apple shares with a price target of $276.
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