It’s 2020 all over again for Apple. At least, that’s according to what some analysts are saying.
D.A. Davidson’s Gil Luria, for example, is bullish on the tech giant following its announcements about artificial intelligence earlier this week. The company’s WWDC keynote turned a lot of sceptics into believers after showing off several upcoming features that could be exclusive to iPhone 15 Pro owners later this year.
According to Luria, effectively phasing out older models by making certain features inclusive of the latest offerings has historically done Apple stocks well.
“As a reminder, the last time Apple shares outperformed was the iPhone 12 cycle – which was the last time an important feature (5G) was introduced and was not backwards compatible,” Luria shares.
The WWDC showcase was Apple’s answer to its relatively weak AI strategy. But, despite the positive publicity, doubts remain. Apple’s stock has stagnated for several reasons, chief of which could be because of its weak sales in China and the United States as well as the legal problems that the company is facing in Europe.
In addition to this, Apple has an antitrust lawsuit, courtesy of the United States Department of Justice, looming over its head.
Considering how long the lawsuit could make headlines, Apple’s reputation is facing an uphill climb.
To make matters worse, Apple’s autonomous electric car project is now officially over after the company spent more than a decade and $10 billion on it.
All in all, while there’s reason to believe that Apple’s stock will surge, it remains important to exercise caution and don’t fall for the hype.
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