Apple Stock Rallies Toward Record High as Ternus Takes Reins
Apple stock has regained momentum, reaching $326 after John Ternus took over as CEO. This move puts Apple back on an upward trajectory and within sight of its late-July all-time high above $344.
The leadership transition adds another major catalyst for investors, with Ternus having 25 years of experience inside Apple and extensive product-development expertise. He previously served as senior vice president of hardware engineering and oversaw development work involving major products including the iPad, AirPods, and Apple Watch.
However, slowing App Store performance and China weakness could challenge the recovery. The App Store revenue growth has slowed down compared to June, with Morgan Stanley analysts predicting a 0.5% year-over-year growth in the calendar third-quarter, below their previous forecast of 1%. This could reduce Morgan Stanley's September-quarter Services revenue estimate by around $45 million.
The iPhone outlook remains more resilient, with Morgan Stanley estimating September-quarter shipments of around 58 million. However, iPad production estimates were reduced, highlighting increasing consumer sensitivity to pricing.