Tech Researcher Says That Apple Inc (AAPL) Is Well-Positioned, Stock Is a Buy
The Trump administration's tariffs will prove to be "pretty transitory," while Apple's (AAPL) new iPhones will have higher average sales prices than their predecessors, Ben Reitzes, a Managing Director and Head of Technology Research at Melius Research told CNBC recently.
As a result of these points, Reitzes has a Buy rating on AAPL stock.
Was Jim Cramer Right About Apple Inc. (AAPL)?
A wide view of an Apple store, showing the range of products the company offers.
How Tariffs Will Affect Apple Inc. (AAPL), According to Reitzes
Reitzes says that he's "pretty optimistic" that there will "eventually (be) a deal" between the U.S. and China regarding tariffs.
Nonetheless, Apple's profit margins are likely to undergo downward pressure over the longer term as the company shifts some of its supply chain to the U.S., he predicted.
But the researcher suggested that Apple would not be significantly damaged by tariffs over the longer term.
Analyzing Apple Inc (AAPL)'s Services Business
After a federal court ruled that Apple Inc (AAPL) had violated an injunction restricting the fees that it charges on app sales made outside of its ecosystem, the tech giant began allowing the owners of App Store apps to direct users to their websites. In the wake of Apple's move, the tech giant declined to provide guidance for its Services business for the current quarter, Reitzes noted.
But, according to the researcher, AAPL can potentially take various, positive steps, including launching new services and making new deals with Alphabet (GOOG) and/or Open AI. Such initiatives will make investors "less worried" about the tech giant's Services business, he said.
While we acknowledge the potential of AAPL, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey
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If he wants, Musk could very easily fund primaries against vulnerable GOP House members, and his control of X gives him unprecedented influence over the media ecosystem. Further, Musk's influence among the Silicon Valley cohort that moved stridently to the right in 2024 could peel off a new group of Republican voters and donors. In that same vein, there are possible electoral consequences for Republicans, even if tempers between Trump and Musk cool down. Trump was counting on the bill's passage to be a significant political tailwind that would boost his polling numbers and Republicans' midterm hopes, particularly given the ongoing chaos over tariffs and trade policy. Now, whichever version of the bill eventually passes, Republicans look like the party of chaos. It is entirely possible that this ongoing feud dents voters' confidence in Republicans' ability to competently govern, something Democrats are clearly hoping for. 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All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
