Apple Stock Eyes Record High as Foldable iPhone Hype Fades

Apple's stock is gaining momentum and nearing its record high of $344. The company's recent product event, which included the unveiling of a foldable iPhone Duo, has boosted investor expectations. However, analysts are warning that Apple's valuation is already near its historical peak, leaving little room for disappointment.

The foldable iPhone Duo starts at around $1,999 and can reach up to $3,000 with higher-storage configurations. While this premium pricing may create a new upgrade cycle and increase average selling prices, it also poses a potential hurdle as consumers become more selective under economic pressure and rising component costs.

Rising memory prices are another concern for Apple, which could put its gross margins under pressure. The company's Services business is also slowing down, with calendar third-quarter App Store revenue growth expected to reach only around 0.5% year over year, below Morgan Stanley's previous forecast of 1%.

Despite these challenges, Apple's latest quarterly numbers were strong, with revenue increasing 16% year over year to $109.4 billion and diluted EPS rising 29% to $2.02. However, forward guidance proved more important for investors, as Apple expects September-quarter revenue growth of 9% to 11%, slightly below Wall Street expectations.