Apple is the IBD Stock Of The Day as Wall Street focuses on iPhone 16 demand amid the holiday shopping season. In a positive for Apple stock, promotions among wireless firms heated up on Black Friday as Verizon Communications sweetened its phone trade-in offer for customers.
The big question for Apple stock continues to be whether "Apple Intelligence" – new artificial intelligence features — spurs demand for iPhone 16 models. In December, Apple is expected to start updating iPhones with its 18.2 iOS release, which includes AI features.
On the stock market today, Apple stock 1% to close at 239.59.
Apple stock is breaking out of a flat base with a 237.49 buy point.
One bullish sign is that the flat base from which Apple is emerging is only 7% deep, compared with 17% for the prior 13-week consolidation.
Apple Stock: Wireless Holiday Promotions
"Black Friday officially kicks off an important holiday season for Apple as its flagship iPhone 16 represents the beginning of its Apple Intelligence launch with the release of 18.2 iOS," Wedbush analyst Daniel Ives said in a note to clients.
He added: "We would characterize demand for iPhone 16 so far since its September launch as slightly ahead to generally in line with expectations globally."
UBS analyst David Vogt on Monday published a note based on a consumer survey. "The survey points to soft iPhone demand as AI interest remains muted," Vogt wrote.
Craig Moffett, analyst at MoffettNathanson, in a report focused on promotions from wireless service providers – a key sales channel for Apple. Moffett noted that Verizon earlier this year in a trade-in offer began accepting "any smartphone, any condition" from customers rather than newer models.
"This year's newest Black Friday offers — some introduced just in the past few days — go a step further," Moffett said. "Led once again by Verizon, the whole market has started offering promotional discounts with no trade-in required."
Still, the impact on iPhone 16 demand remains to be seen.
Earnings Top Estimates
"Generally speaking, more (promotions) — especially with retention offers for existing subscribers — would obviously be good for Apple," Moffett said.
With Monday's gain, Apple stock has advanced about 24% in 2024.
Apple reported fiscal fourth-quarter adjusted earnings of $1.64 a share on sales of $94.93 billion in the quarter ended Sept. 28. Analysts polled by FactSet had expected earnings of $1.60 a share on sales of $94.5 billion.
On a year-over-year basis, Apple earnings rose 12% while sales increased 6%.
Apple Stock Technical Ratings
Apple stock is on the IBD Tech Leaders list. It holds a Composite Rating of 91 from Investor's Business Daily, according to IBD Stock Checkup.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Further, Apple stock has an Accumulation/Distribution Rating of C. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling.
The rating, on a scale of A+ to E, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying; E means heavy selling. Think of the C grade as neutral.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
