Reuters
2024.07.10 12:17
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BUZZ-Apple edges higher as Needham hikes PT, says iPhone maker should build ad business

Apple's stock rises as Needham increases its price target and suggests the company should build an advertising business, following Amazon's example. Needham also mentions that advertising margins are typically high, which would drive margin expansion without raising device prices.

Shares of iPhone-maker Apple (AAPL.O) rise 0.5% to $229.75 premarket

Stock set to open at record high, if premarket gains hold

Brokerage Needham raises AAPL’s PT to $260 from $220, says the company authorized $110-bln share repurchase at a time when other Big Tech companies are spending $50 bln to $100 bln on GenAI infrastructure instead

“We believe that AAPL should build an advertising business, just as Amazon has done” - brokerage

Adds that ad margins are typically 70% to 80%, which would drive margin expansion, without raising device prices

Up to last close, AAPL had risen ~19%, compared with a ~17% increase in the S&P 500 index this year