Apple (AAPL) reported record revenue of $114.5 billion for its fiscal Q4, driven by a 17% growth in iPhone sales. Despite this strong performance, rising memory costs are squeezing gross margins, limiting earnings per share (EPS) growth. The company's guidance suggests record December-quarter sales but only a modest 2% EPS growth, as memory inflation and slower Services growth offset operational gains.
The stock fell 1.9% to $331.90 on November 3 following the earnings report, as investors reacted to the weaker margin outlook. However, it rebounded sharply on November 4, surging 6.6% to a record high of around $354 in a post-election rally.
Analysts rate Apple a Hold with a 12-month target of $335, implying roughly 5% downside from the recent peak. While the company's robust cash generation and upcoming product cycles, including the iPhone Duo and Siri AI, support the share price, current valuations already factor in steady growth.
The analyst maintains no stock, option, or similar derivative position in any of the companies mentioned and no plans to initiate any such positions within the next 72 hours.