tiprankstipranks
Trending News
More News >

‘Keep an Eye on the App Store,’ Says Goldman Sachs About Apple Stock

Story Highlights

Goldman Sachs’ Top analyst maintains a Buy rating on Apple stock with a $253 price target, citing strong momentum in App Store spending.

‘Keep an Eye on the App Store,’ Says Goldman Sachs About Apple Stock

Apple Inc. (AAPL) is once again proving the strength of its Services segment, which now plays a key role in the company’s overall revenue. While iPhones and Macs often grab headlines, Apple’s Services segment, including the App Store, Apple Music, and iCloud, continue to grow steadily, generating a reliable stream of income. Building on this momentum, Goldman Sachs’ Top analyst Michael Ng  recently shared upbeat insights on Apple’s App Store performance. The five-star analyst reiterated a Buy rating on the stock and held firm on a $253.00 price target, reflecting his confidence in Apple’s expanding Services business.

Confident Investing Starts Here:

 It’s worth noting that during the fiscal Q2 2025 earnings call (for the quarter ending March 29), Apple’s Services segment hit a new milestone. Revenue reached $26.65 billion, marking 12% year-over-year growth and setting a new quarterly record.

App Store Spending Jumps Ahead of Expectations

Ng cited fresh data from Sensor Tower, a firm that tracks mobile app trends, showing that “April and May 2025 Apple App Store spending grew over 12% and +13%, respectively.” This strong growth signals increasing user demand for apps and digital content, a core part of Apple’s recurring revenue strategy.

Looking at the current fiscal Q3, Ng said App Store revenue is up “+12% year-over-year to date.” This is slightly higher than the growth estimates from both Goldman Sachs and FactSet, which expected increases of +11% and +10%, respectively. In other words, Apple’s Services are performing better than many experts predicted.

Importantly, Ng believes the App Store “should continue to be the largest category within AAPL’s Services revenue.” Goldman Sachs estimates it will account for about 27% of total Services revenue in the third quarter. Given its role in driving income from app purchases, in-app spending, and subscriptions, this consistent growth is a positive signal for Apple’s longer-term outlook.

Is AAPL Stock a Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, eight Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $228.22 per share implies 13.15% upside potential.

See more AAPL analyst ratings

Disclaimer & Disclosure

Looking for a trading platform? Check out TipRanks' Best Online Brokers , and find the ideal broker for your trades.

Report an Issue