Apple Stock Tumbles Towards $300 Amid App Store Revenue Concerns
Apple's stock has been sliding towards $300 due to concerns over its App Store revenue and forward growth. The company reported a 16% year-over-year increase in revenue, but investors were disappointed with the softer guidance for the September quarter.
Morgan Stanley's data tracker showed that Apple's App Store net revenue was down 0.6% year-over-year through August 17, marking its first annual decline in four years. This trend could continue, leading to a possible $45 million decrease in Services revenue estimates.
The weakness in the App Store is attributed to lower take rates, external linkouts, softer gaming demand, and foreign-exchange headwinds. AppleCare pricing actions may provide some offset, but the broader trend remains concerning.