Apple shares slip as analysts dissect App Store revenue growth

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Apple ($NASDAQ:AAPL) shares slipped on Wednesday as several analysts dissected App Store revenue growth last month, led by gaming. Bank of America analyst Wamsi Mohan, who has a buy rating on Apple shares and a $200 price target, noted that the global App Store grew 4% year-over-year in May. “We think this is a good sign for Apple’s services business overall and could be an indication that iPhone users are increasingly turning to their phones for entertainment and gaming as opposed to just communication,” Mohan wrote in a note to clients. Other analysts were less optimistic. Still, Walkley said he believes Apple’s “sticky ecosystem” will continue to drive strong iPhone upgrade rates and overall revenue and earnings growth. It’s unclear how much of an impact App Store revenue growth will have on Apple’s overall business.

Market Reaction

The current media sentiment towards APPLE is mostly positive. On Wednesday, APPLE stock opened at $134.8 and closed at $135.4, down by 0.4% from the previous closing price of $135.9.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on APPLE are made simple by VI app. Based on VI Risk Rating, APPLE is a low risk investment in terms of financial and business aspects. However, there are some potential risks in terms of the company’s business and financials that you should be aware of. You can find more information on these risks on our website.

Summary

The stock was down 0.4% following the news. Apple will continue to be a strong investment in the long term. The company is continually innovating and expanding its product line. It also has a large cash reserve that it can use to invest in new businesses or return to shareholders through dividends or share repurchases.