Apple rises 3% premarket, trading at $219.65

Apple rises 3% premarket, trading at $219.65

Apple Inc. (NASDAQ:AAPL) shares rose by approximately 3% premarket on Friday, July 2, 2025, trading at $219.65 after the company reported its third-quarter fiscal 2025 results. The stock's performance follows a mixed analyst reaction, with some maintaining a positive outlook while others expressed caution.

Citi analysts kept their Buy rating on Apple and raised the price target to $245 from $207.57. They noted that Apple's outlook allayed fears of a revenue shortfall in the September quarter, attributing the positive impact to tariffs and higher promotional intensity in China. However, the analysts emphasized that the pull-forward effect was limited to around 1% of the revenue growth, primarily concentrated in April in the U.S. [1].

Needham analysts, who hold a Hold rating on Apple, noted the strong third-quarter results but pointed out that Apple's capital expenditures (capex) are rising, and AI initiatives have been delayed. Laura Martin and her team at Needham argue that Apple's shares will not work until there is a new iPhone replacement cycle. They also highlighted that Apple's calendar 2025 will not be the year for the integration of Apple Intelligence, suggesting that the company is focusing on the next year [2].

Oppenheimer reiterated its Perform rating on Apple, noting the strong third-quarter results with revenue/EPS of $94.0B/$1.57. Greater China grew 4% year-over-year, improving from year-over-year declines in the previous two quarters. However, the analysts noted that the stock is overshadowed by potential government rulings on Google Traffic Acquisition Costs (TAC), added costs relating to tariffs, and a weaker iPhone product cycle with underwhelming AI features [3].

Morgan Stanley kept its Overweight rating on Apple and raised the price target to $240 from $235. Analysts led by Erik Woodring said this was Apple's strongest quarterly report/guidance in over two years, with outperformance broad-based across Product/Services and regions. However, they cautioned that until clarity emerges on tariffs and regulation, Apple shares are unlikely to break out [4].

The mixed analyst sentiment underscores the complexity of Apple's current situation. While the company reported strong earnings and guided to mid- to high-single-digit revenue growth in the current quarter, investors remain cautious about potential headwinds from tariffs, AI features, and the iPhone replacement cycle.

References:
[1] https://seekingalpha.com/news/4476513-apple-rises-after-strong-q3-but-analysts-also-mull-on-tariffs-ai
[2] https://www.investing.com/analysis/apple-stock-big-earnings-small-movetime-to-buy-200664721
[3] https://seekingalpha.com/news/4480294-apple-stock-surges-6-ahead-of-expected-100b-investment-announcement
[4] https://www.ainvest.com/news/apple-stock-surges-5-8-100-billion-manufacturing-investment-pledge-2508/