Apple Analysts Stand Firm Amid Antitrust Suit: What You Need to Know
As a crypto enthusiast, you may be wondering about the recent Department of Justice antitrust lawsuit against Apple and how it could impact the tech giant. Despite the legal battle and potential aftershocks, Wall Street analysts are standing by Apple and highlighting upcoming catalysts for the company. Here’s what you need to know:
Wall Street Stands By Apple
- The DOJ’s antitrust suit alleges that Apple established a monopoly in the smartphone market through its ecosystem, harming consumers, developers, and competitors.
- The lawsuit also claims that Apple obstructed cross-platform messaging apps and limited third-party wallet and smartwatch compatibility to drive sales of its products.
- Despite these challenges, major analysts like Morgan Stanley and JPMorgan are maintaining their buy-equivalent ratings on Apple.
Analysts’ Outlook
- About 60% of analysts have a buy or overweight rating on Apple stock, with an average price target suggesting a 16% upside.
- Morgan Stanley’s Erik Woodring believes that Apple’s Edge AI initiatives and upcoming announcements could offset concerns about the lawsuit and drive growth.
- JPMorgan’s Harlan Sur expects investor interest to focus on AI-led upgrades and sees potential for a price-to-earnings multiple boost for the stock.
Potential Impact of Lawsuit
- Analysts like Evercore ISI’s Amit Daryanani view the antitrust suit as more of a headline risk than a financial one for Apple.
- Bernstein’s Toni Sacconaghi does not foresee a breakup or spinout from the suit and believes any financial impact on Apple would be limited.
- If the DOJ prevails in the suit, payments companies like PayPal and Block could benefit from increased competition in digital wallets.
Hot Take: What This Means for Crypto Investors
For crypto investors, the outcome of the DOJ antitrust suit against Apple could have implications for digital payment providers. If Apple is forced to open up its wallet system, companies like PayPal and Block may see increased opportunities for growth. Keep an eye on how this legal battle unfolds and consider potential investment opportunities in payment providers as a result.
By
By
By
By
By