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
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
27 minutes ago
- Business Insider
Have you seen this car?
Donald Trump 's red Tesla was not seen on the White House grounds on Tuesday. Trump bought a red Tesla Model S in March. Trump and Elon Musk have been going through a very public spat. Donald Trump may be erasing one very public sign of Elon Musk 's White House tenure. Trump's red Tesla Model S was not in its usual spot on the White House grounds on Tuesday, ABC News's Jonathan Karl wrote on X. Meanwhile … The red Tesla that @POTUS bought from @elonmusk is no longer at the White House — Jonathan Karl (@jonkarl) June 10, 2025 Monday afternoon, hours before the car's apparent absence was noticed, Trump said that he might move the vehicle amid his very public spat with Musk, the man who once called himself Trump's "First Buddy." "I may move the Tesla around a little bit, but I don't think we'll be doing that with Starlink," he told reporters. "It's a good service." Trump didn't say where he might move it. "I have a lot of locations," he said. "I had so many locations that I don't know what to do with them all." The president could have had the car moved somewhere else, including to his private golf club near the nation's capital. Trump and his allies have criticized Musk after the world's richest man refused to back down from his call to kill "The One Big Beautiful Bill," the centerpiece of the president's domestic agenda. Musk retorted by alleging that Trump is blocking the release of the so-called "Epstein Files" because of his ties to the disgraced financier Jeffrey Epstein. Trump bought the Tesla in March at a White House event aimed at bucking up Musk's flagship company as backlash mounted to the billionaire's work with the White House's DOGE office. At the time, a handful of top administration officials made public moves to boost Tesla as its share prices tanked amid protests at dealerships and a rise in trade-ins of its popular EVs. Following last week's high-profile spat, a White House official said Trump was considering selling the car. A White House spokesperson did not immediately respond to a request for comment from Business Insider.
Yahoo
27 minutes ago
- Yahoo
Fmr. Congressman who introduced Trump's 2017 TCJA talks tax bill
The US Senate is weighing President Trump's budget bill. Former Congressman Kevin Brady, who introduced the 2017 Tax Cuts and Jobs Act during Trump's first term, joins Catalysts with Madison Mills to discuss the bill and its impact. To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
29 minutes ago
- CNBC
Wall Street's 'fear gauge' just experienced its third biggest decline ever. What it means going forward
Wall Street's so-called fear gauge recorded a steep slide over recent months. That's good news for investors looking longer term. The CBOE Volatility Index (VIX) has dropped around 35 points over the two months since President Donald Trump rolled back many of his market-roiling tariffs in April. That's the third largest decline in the VIX's history going back to 1990, according to Bespoke Investment Group data, ranking behind periods in late 2008 and mid 2020. .VIX 3M mountain The VIX over the last 3 months As the VIX has retreated, stocks have rebounded significantly from the sell-off seen in the wake of Trump's initial policy unveiling. However, Bespoke noted that stocks' climb of around 20% is relatively small compared to historical performance in the aftermath of slides of this magnitude in the VIX. "Historically, the relationship between the two would suggest a surge of more than 50% over the same period, but stocks are 'only' up 20%," the firm wrote to clients. "That makes this a pretty large outlier between options and the underlying assets they track." Looking ahead, Bespoke said this pullback in the fear gauge can be "bullish" when using a longer time horizon. For example, the largest two-month VIX drops in history have correlated with average moves for the S & P 500 of nearly 6% over the following six months and almost 12% over a year. However, Bespoke warned that traders should be willing to wait, as moves over one and three months are relatively muted. Said another way, investors focused only on near-term action will find a significant tumble in the VIX to be "not very relevant." "In other words, the easy money has been made," Bespoke wrote to clients. "But there could likely be more on the table for patient investors going forward." A short round trip Bespoke isn't the only firm watching the market action following the volatility scare. Essentially, Deutsche Bank said this has been the shortest market plunge on a volatility shock on record. Strategist Parag Thatte said in a note to clients published last week that in a typical volatility-induced jolt, equities take about two months to bottom and then another four or five months to make up losses. This time, however, the stock market has bottomed and clawed back losses in under two months. In past shocks, the S & P 500 would be down close to 10% at this point. But as of midday Tuesday, the S & P 500 is up more than 6% since Trump first announced his plan for broad and steep levies on April 2. .SPX mountain 2025-04-02 The S & P 500 since April 2
