Latest news with #MoffettNathanson
Yahoo
2 days ago
- Business
- Yahoo
Apple (AAPL) Hit With ‘Sell' Rating Ahead of Earnings Report
Apple Inc. (NASDAQ:AAPL) is one of the . On June 30, MoffettNathanson reiterated the stock as 'Sell' as the firm braces for a difficult earnings report for Apple in late July. The firm cited several issues leading to the sell rating, ranging from tariffs and China discounting to AI strategy and even the potential fallout from regulatory rulings. 'In the U.S., it appears that our anticipation of a pull-forward of demand to beat potential price increases on Apple (NASDAQ:AAPL) products in response to tariffs has been borne out,' A professional investor making key decisions in a buy-sell trade on a stock portfolio display. The firm said this, noting that iPhone unit volumes in April and May were up double digits year over year. However, they noted that the revenue may not keep up due to weaker average selling prices. Apple's AI positioning, meanwhile, may be promising, but it is still seen as 'rudderless in AI.' 'It seems to us, though, that greater uncertainty ought to mean lower multiples. And given the asymmetry of the risks, we'd argue for lower estimates, as well. To date, the market has supplied little of either.' While we acknowledge the potential of AAPL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and Disclosure: None. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Apple stock: Analyst flags AI concerns, warns of downside risk ahead of earnings
-- Apple faces significant uncertainty ahead of its fiscal third-quarter earnings, with MoffettNathanson warning that the coming report 'will be unusually difficult to make sense of.' The firm reiterated a Sell rating and a $139 price target on the stock, citing multiple unresolved issues ranging from tariffs and China discounting to AI strategy and potential fallout from regulatory rulings. 'In the U.S., it appears that our anticipation of a pull-forward of demand to beat potential price increases on Apple (NASDAQ:AAPL) products in response to tariffs has been borne out,' MoffettNathanson said, noting that iPhone unit volumes in April and May were up double digits year over year. However, they note that revenue may not keep pace due to weaker average selling prices. On China, the firm observed that while iPhone volumes spiked in May, average selling prices 'appear to have been cut dramatically' as Apple discounted Pro models to align with local government subsidies, another move that may have front-loaded demand. The firm also said investors face uncertainty around Apple's Services revenue. 'It will reflect a month and a half or so of impacts from the Epic Games ruling… Will those impacts show up in the numbers, or is it still too early to say?' MoffettNathanson asked. Perhaps most pressing is Apple's AI positioning, according to MoffettNathanson. The firm said Apple is still seen as 'rudderless in AI' and may consider 'buying an answer' to its perceived shortcomings, further muddying the near-term outlook. 'With the asymmetry of the risks, we'd argue for lower estimates,' the firm wrote. 'To date, the market has supplied little of either.' MoffettNathanson warned that 'greater uncertainty ought to mean lower multiples,' underscoring downside risk for the stock. Related articles Apple stock: Analyst flags AI concerns, warns of downside risk ahead of earnings FX-hedged stocks seen outperforming as euro rises, says Morgan Stanley Wolfe upgrades Medtronic as pulsed field ablation may jolt near term growth
Yahoo
5 days ago
- Business
- Yahoo
Moffett Nathanson Remains Bullish on Amazon.com (AMZN), Raises PT to $253 from $250
Inc. (NASDAQ:AMZN) is one of the 13 Best Long Term Growth Stocks to Invest in Right Now. In a report released on June 25, Michael Morton from Moffett Nathanson maintained a Buy rating on Inc. (NASDAQ:AMZN), raising the price target on the stock to $253 from $250. A customer entering an internet retail store, illustrating the convenience of online shopping. Morton reasoned that Inc. (NASDAQ:AMZN) is well-positioned to exceed profit expectations in 2025 and 2026, even if cost pressures increase in its cloud unit, Amazon Web Services (AWS). Inc. (NASDAQ:AMZN) is a multinational technology company that provides online retail shopping services. It operates through the North America, International, and Amazon Web Services (AWS) segments. Its AWS segment covers global sales of storage, computers, databases, and other services for government agencies, academic institutions, startups, and enterprises. While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Moffett Nathanson Remains Bullish on Amazon.com (AMZN), Raises PT to $253 from $250
Inc. (NASDAQ:AMZN) is one of the 13 Best Long Term Growth Stocks to Invest in Right Now. In a report released on June 25, Michael Morton from Moffett Nathanson maintained a Buy rating on Inc. (NASDAQ:AMZN), raising the price target on the stock to $253 from $250. A customer entering an internet retail store, illustrating the convenience of online shopping. Morton reasoned that Inc. (NASDAQ:AMZN) is well-positioned to exceed profit expectations in 2025 and 2026, even if cost pressures increase in its cloud unit, Amazon Web Services (AWS). Inc. (NASDAQ:AMZN) is a multinational technology company that provides online retail shopping services. It operates through the North America, International, and Amazon Web Services (AWS) segments. Its AWS segment covers global sales of storage, computers, databases, and other services for government agencies, academic institutions, startups, and enterprises. While we acknowledge the potential of AMZN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Globe and Mail
6 days ago
- Business
- Globe and Mail
Why One Top Analyst Is Bullish on Amazon Stock (AMZN) Despite AWS Cost Pressures
Amazon (AMZN) rose 2% on Tuesday to close at $212.77, and one top Wall Street analyst sees more upside ahead. In a new update, analyst Michael Morton at MoffettNathanson raised his price target on the stock from $250 to $253 while keeping a Buy rating, suggesting about 19% potential upside from current levels. Morton believes Amazon is well-positioned to beat profit estimates in 2025 and 2026, even as cost pressures rise in its cloud unit, Amazon Web Services (AWS). Confident Investing Starts Here: It is worth noting that Morton has a success rate of 70%, with an average return per rating of 22.5% over a one-year timeframe. Top Analyst's Take on Amazon The analyst said that while Amazon is known for its shopping business, its real profits come from AWS and advertising. Following Amazon's latest quarterly breakdown on segment-level depreciation, Morton updated his AWS forecast and believes that most analysts may be underestimating the rising costs from Amazon's large cloud investments. He expects Amazon to spend about '$200 billion from FY24 to FY26 ' to expand AWS, mostly on servers and network equipment, which lose value quickly over time. As a result, depreciation costs at AWS are set to rise from '13% in Q424 to 23% in Q426.' This could lower AWS profit margins by about 10 percentage points. Even with some margin pressure ahead, Morton remains upbeat about Amazon's outlook. He sees the next 18 months as strong, particularly for AWS margins in 2025. He expects Amazon to beat profit estimates in both 2025 and 2026, supported by strong demand, better cost efficiency, and steady growth in its high-margin advertising business. His updated price target of $253 reflects the view that Amazon's strong earnings performance in the near term is not yet fully priced in by the market. What Is the Price Target for Amazon Stock? Overall, Wall Street is bullish on Amazon stock, with a Strong Buy consensus rating based on 47 Buys and one Hold recommendation. The average AMZN stock price forecast of $243 indicates 14.21% upside potential. See more AMZN analyst ratings
