From 24/7 Wall St. · Vandita Jadeja · · 1m
Apple's Siri AI Pushes Stock Toward $450
Apple's Siri AI could push stock past $450 as services grow but memory costs threaten margins.
In brief
Apple's Siri AI could push stock past $450 as services grow but memory costs threaten margins. Apple's Siri AI drives services growth and iPhone upgrades, but memory costs risk margins and could push stock below $350. Originally reported by 24/7 Wall St..
Apple's Ninth Straight Earnings Beat
Apple reported revenue of $109.42 billion (+16.4% YoY) and a 9th straight EPS beat.
Siri AI Drives Services Growth
Siri AI boosts services revenue to $30.7 billion (+12%) with 1.5 billion paid subscriptions.
Apple's 52-Week High
Shares sit 6% below 52-week high of $348.15 and 27.39% up year to date.
Siri AI's Potential Upside
Siri AI could push stock to $452.19 with 31.46% gain from current price.
Memory Costs Threaten Margins
Memory pricing described as '100-year flood' risks gross margin below 47%.
“100-year flood”
Apple vs. Microsoft and Alphabet
Apple has highest P/E of 45x versus Microsoft's 30x and Alphabet's 15x.
Next Year Price Targets
2027 price target at $397.25 with 31.46% gain from current price.
Here's the gist
Apple's Siri AI drives services growth and iPhone upgrades, but memory costs risk margins and could push stock below $350.
