Evercore ISI Sticks to Apple Despite Six Straight Months of Declining App Store Revenues

Evercore ISI has reaffirmed its Outperform rating and $365 price target on Apple Inc. (AAPL) despite weak App Store revenue data in August. The stock currently trades at $325, up 42% over the past year.

The firm noted that App Store revenues declined 1% year-over-year in August, marking the sixth consecutive month of deceleration and the first year-over-year decline since November 2022. Gaming segment revenues fell approximately 10% year-over-year compared to an 8% decline in July.

However, excluding gaming, App Store revenues grew approximately 8% year-over-year in August, led by growth in productivity (40%), music (18%), photo and video (9%), social networking (5%), and entertainment (0%).

The US App Store revenues declined 10% year-over-year, while China revenue grew 8% year-over-year. Japan's App Store revenue fell 4%.