Apple bears have missed out on more than $1 trillion of stock gains

Wedbush analysts led by Daniel Ives argue that investors who have underestimated Apple’s potential have overlooked three key factors:

• Massive Installed Base: Apple boasts an impressive installed base of over 2 billion iOS devices and 1.5 billion iPhones.

• Upgrade Cycle: Approximately 300 million of these iPhones are eligible for an upgrade, representing a significant opportunity for Apple.

• Apple Intelligence: The integration of AI-powered features into Apple’s products is expected to drive further growth and innovation.

Ciara Linnane for MarketWatch:
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The services business is worth $2 trillion which is increasing the monetization of the customer base, said the note. And consumer artificial intelligence “will go through Apple’s ecosystem with over 20% of the world’s population ultimately interacting with AI on an Apple device the next few years,” said the note.

“We believe the success of iPhone 16 with a strong holiday season ahead will be the launching pad for a renaissance of growth in Cupertino over the next 12 to 18 months,” the analysts wrote.

Wedbush has an outperform rating on Apple’s stock heading into the holiday season and a 12-month price target of $300, that’s about 28% above its current price.

Wedbush is bullish on the stock over a more long-term vista too, predicting a multi-year AI journey that will define the company’s future.

The company could sell north of 240 million iPhone units in fiscal 2025 as the cycle takes hold, marking the highest sales of iPhones in Apple’s history, said the note.

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MacDailyNews Take: What did we write on March 6th when Apple closed at $168.51, or $70.78 per share ago?

Oh, right:

Overwrought times like these are pure gifts for longterm Apple investors. We dream of sub-$150, even sub-$160. Regardless, accumulate.

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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

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