The stock price of Apple, the renowned tech giant listed on NASDAQ as AAPL, is making a recovery after facing several challenging months in 2024. The company had to deal with issues such as a decline in iPhone sales in China, and a lawsuit from the United States Department of Justice (DOJ) that negatively impacted investor confidence in the stock. However, as of now, the stock has shown a positive turnaround, currently trading at $192.32. It has experienced gains of 3.60% on a year-to-date basis, bouncing back from its low point of $165 in April.
Seeking insights into the stock’s expected future price, Finbold consulted Wall Street analysts at TradingView and OpenAI’s advanced AI tool, ChatGPT-4o. These sources provided valuable perspectives on the stock’s projected price over the next 12 months.
According to 48 Wall Street analysts at TradingView, the average price target for Apple stock in the next year is $202.72, indicating a 5.45% increase from its current price. This consensus reflects a cautiously optimistic outlook among financial experts. Some analysts are more bullish, predicting that the stock could reach as high as $275, representing a significant 43% increase. On the other hand, the most pessimistic analysts foresee a potential drop to $125, indicating a possible decline of 34%.
Overall, the majority of analysts recommend buying Apple stock, with 20 giving a “strong buy” rating and 11 advising a “buy.” Only two analysts have issued a “strong sell” recommendation, demonstrating confidence in Apple’s future performance despite some reservations.
ChatGPT-4o, while acknowledging the uncertainty in stock price predictions, identified several factors that could influence Apple’s stock price. The AI tool highlighted Apple’s track record of innovation and strong market presence as indicators that have traditionally supported its stock price. The upcoming release of new iPhone models, advancements in augmented reality and artificial intelligence, and financial indicators such as quarterly earnings, revenue growth, and profit margins are all key drivers of growth for the company. Additionally, broader economic trends, interest rates, inflation, geopolitical developments, global economic conditions, market share, and competitor strategies are all factors that can impact Apple’s operations and stock prices.
Taking these factors into account, ChatGPT-4o provided three potential price scenarios for Apple stock. In an optimistic scenario, where Apple continues its trajectory of innovation and maintains strong financial health, the stock could surge between $220 and $250. In a moderate scenario with steady growth and no major disruptions, a 10-15% increase is projected, placing the stock between $210 and $220. Conversely, in a pessimistic scenario characterized by significant challenges such as economic downturns or supply chain issues, the stock might stagnate or decline, potentially trading between $180 and $200.
In the meantime, Apple is showing promising growth in key metrics, which is likely to boost investor confidence amid increasing competition. For example, in the first quarter of 2024, the company’s revenue reached $119.6 billion, a 2% increase compared to the previous year, and its EPS was $2.18, a 16% increase year-over-year, setting a record. Additionally, iPhone revenue grew by 6% to $69.7 billion, and Mac revenue saw a 1% increase to $7.8 billion.
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