Needham analyst Laura Martin has maintained their neutral stance on AAPL stock, giving a Hold rating yesterday.
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Laura Martin has given her Hold rating due to a combination of factors, primarily revolving around Apple’s current position in the rapidly evolving field of Generative AI (GenAI). She expresses concern that Apple has not yet articulated a clear strategy for integrating GenAI into its products, which is crucial as competitors like Google are swiftly advancing in this area.
Martin highlights the risk that Apple’s lack of a GenAI plan poses to its competitive edge, particularly in relation to its flagship product, the iPhone. The absence of GenAI features could lead to a decline in Apple’s market position and potentially result in the loss of top AI talent. Additionally, the pressure on Apple’s leadership to address these strategic gaps is mounting, as evidenced by the company’s recent stock performance. Therefore, Martin advises caution as Apple approaches its upcoming earnings call, suggesting that any efforts to catch up in GenAI will likely incur significant costs.
In another report released yesterday, Loop Capital Markets also reiterated a Hold rating on the stock with a $215.00 price target.