Apple Stock Hits Record High Despite Market Dip: Analyst Lauds ‘Teflon’ Quality, Retail Unsure

Published 2024-12-09, 02:25 p/m
Apple Stock Hits Record High Despite Market Dip: Analyst Lauds ‘Teflon’ Quality, Retail Unsure
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Stocktwits - Shares of Apple (NASDAQ:AAPL), Inc. rose over 1.5% on Monday afternoon, hitting a record high even as broader market indices, including the S&P 500 and Nasdaq Composite, pulled back from their own peaks.

The broader tech sector struggled, with Nvidia (NASDAQ:NVDA) down nearly 3% following a Chinese antitrust investigation.

However, Apple appeared to be buoyed by bullish commentary from analysts like Melius Research’s Ben Reitzes.

Speaking on CNBC, Reitzes expressed enthusiasm about Apple’s upcoming products, including new iPhone features, an upgraded SE model, and potential foldable devices.

Reitzes highlighted Apple’s integration of ChatGPT into its ecosystem, a move he believes could eventually generate revenue via pro-version upgrades.

“I mean, the integration of ChatGPT, and by the way, they [Apple] should get a cut eventually of those who upgraded the pro versions of OpenAI’s new stuff, and I think they will play a role there,” he said.

He also pointed to gradual improvements in Siri and the potential for a “multi-year cycle” of product launches.

“And we think the stock's Teflon, by the way. I mean, there's been people trying to will this thing down and all it does is go up every day,” he added.

Responding to a question about where he thinks Apple is in the arc of CEO Tim Cook's tenure, Reitzes replied, “It seems to me he's [Cook’s] got energy to stick around at least a few more years.”

“I think Tim's got some energy left to see this AI thing through,” he added.

Still, retail sentiment on Stocktwits turned ‘bearish’ amid high message volume.

Many retail investors voiced skepticism, citing concerns over market valuations and Apple’s future growth trajectory.

Apple’s stock currently has a price-to-earnings ratio of 40.1,

Adding to the mixed sentiment, last week TF International Securities analyst Ming-Chi Kuo noted delays in Apple’s smart home-focused HomePod with a display, pushing mass production to late 2025.

The product, featuring an A18 chip and a 6–7-inch screen, may ship around 500,000 units in its first year if positively received, according to Kuo.

Last month, Apple warned investors about the challenges of maintaining profitability in new ventures like AI and virtual reality compared to its lucrative iPhone business.

Year-to-date, Apple stock has risen about 33%, slightly outperforming the S&P 500 and keeping pace with the Nasdaq Composite’s gains.

This content is provided by Stocktwits

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