Apple stock has best day since 2022 after earnings beat, $110 billion stock buyback

Apple
shares
popped
6%
Friday
after
the
company
reported

better-than-expected
second-quarter
earnings
and
the
largest-ever
stock
buyback
program.
It
was
the
best
day
for
the
stock
since
Nov.
30,
2022.

The
iPhone
maker
announced
Thursday
it
would
repurchase
$110
billion
of
its
shares,
the

biggest
buyback
in
U.S.
history,
surpassing
Apple’s
prior
repurchases.
The
company
posted
earnings
of
$1.53
per
share
on
revenue
of
$90.75
billion,
exceeding
analysts’
estimates
of
earnings
of
$1.50
per
share
on
revenue
of
$90.01
billion,
according
to
LSEG.

But
overall
sales
decreased
4%
and
iPhone
sales
dropped
10%
year
over
year
during
the
quarter,
indicating
flagging
demand
for
the
smartphone’s
latest
generation.
Apple
CEO
Tim
Cook
told
CNBC
that
quarterly
sales
suffered
from
a
difficult
comparison
to
the
year-earlier
period.

Analysts
at
Bank
of
America
reiterated
their
buy
rating
of
Apple
stock,
calling
it
a
top
pick,
and
raised
their
price
target
to
$230
from
$225
in
a
Friday
investor
note,
writing
that
they
expect
the
company
to
roll
out
generative
artificial
intelligence
features
for
the
iPhone
this
year.

“Apple
is
growing
iPhones
in
Mainland
China,
estimate
revisions
are
turning
positive
and
GenAI
features
will
drive
a
strong
upgrade
cycle,”
they
wrote.

JPMorgan
analysts,
maintaining
an
overweight
rating,
lifted
their
price
target
for
Apple
to
$225
from
$210
on
Thursday,
pointing
to
“resilient”
year-over-year
iPhone
revenues
and
“expectations
of
an
upgrade
cycle-led
tailwind
in
iPads”
ahead
of
Apple’s

product
launch
event
next
week.

“All
in
all,
while
modest
revenue
growth
year-over-year
might
not
be
the
ideal
outcome,”
they
wrote,
“it
now
provides
visibility
into
higher
revenue
opportunities
in
the
coming
years
with
tailwinds
from
product
cycles
across
hardware
devices
as
well
as
an
AI-led
smartphone
cycle
further
boosting
growth.”

Morgan
Stanley
analysts
retained
their
overweight
rating
of
Apple
and
hiked
their
price
target
to
$216
from
$210
on
Friday,
citing
the
company’s
quarterly
performance,
year-over-year
growth
in
iPhone
shipments
to
China
in
March,
stock
buyback
and
hints
at
AI
updates
to
come.

“It’s
hard
not
to
get
more
bullish
here,”
they
wrote.

—
CNBC’s
Michael
Bloom
contributed
to
this
report.