Morgan Stanley Cautious on Apple Stock Following Earnings
Apple (AAPL) reported better-than-expected earnings and revenue for its fiscal third quarter, but shares fell sharply due to weak guidance. The company cited supply chain constraints as a major issue affecting product availability across iPhone, iPad, and Mac units. CEO Tim Cook described the situation as a “hundred-year flood” in memory supply before passing leadership over to John Ternus. Morgan Stanley responded by lowering its price target for Apple stock from $364 to $360 while maintaining an Overweight rating. The firm highlighted ongoing challenges including margin pressure, slowing Services growth, and limited flexibility due to supply constraints. Despite strong product demand, the bank warned of potential softness in performance until new catalysts like iPhone launches or AI features become more prominent. Apple’s stock is still up 13.63% year-to-date but underperformed compared to Amazon and Alphabet among Magnificent Seven stocks.
Tickers: $AAPL
Topics: Apple Earnings Report Stock Performance Supply Chain Constraints