Stock Market News

Apple Services Revenue Tracking Below Consensus for June Quarter – Morgan Stanley

2022.07.05 16:21

Apple Services Revenue Tracking Below Consensus for June Quarter - Morgan Stanley
Apple Services Revenue Tracking Below Consensus for June Quarter – Morgan Stanley

By Senad Karaahmetovic

After analyzing Sensor Tower data for June, Morgan Stanley analyst Katy Huberty sees a risk of Apple (NASDAQ:AAPL) missing on App Store revenue growth consensus as far as the June quarter is concerned.

The analyst projects that the App Store net revenue growth decelerated to +2.5% Y/Y in June vs. 4% Y/Y in May, driven by a bigger-than-expected deceleration in China. This could imply App Store net revenue growth rose 5% Y/Y in the June quarter, below Morgan Stanley’s forecast of 6%.

“App Store net revenue growth in China inflected to 6% Y/Y declines in the month of June (slightly better than we previewed in mid-June) vs.3% Y/Y growth in May, accounting for more than 100% of the total App Store deceleration in June vs. May,” Huberty explained in a client note.

Assuming that other Apple Services segment estimates are unchanged, Huberty sees Apple Services revenue at $19.46 billion, below Morgan Stanley and Street’s consensus of $19.52 and $19.71 billion, respectively.

“We see a path for App Store growth to reaccelerate in C2H22, as Y/Y compares for the remainder of the year (and into CY23) ease each successive quarter, with 2-year stacked growth compares decelerating after 2Q as well. More cautious US Consumer spending survey data as well as a continued reopening of China post-COVID lockdowns will be the two key factors investors need to follow closely to track the trajectory of App Store performance in the September quarter, in our view,” Huberty concluded.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 81,934.95 3.08%
ethereum
Ethereum (ETH) $ 1,890.78 3.02%
tether
Tether (USDT) $ 0.999933 0.02%
xrp
XRP (XRP) $ 2.25 5.11%
bnb
BNB (BNB) $ 634.21 1.07%
solana
Solana (SOL) $ 124.21 4.31%
usd-coin
USDC (USDC) $ 1.00 0.01%
cardano
Cardano (ADA) $ 0.692935 4.63%
dogecoin
Dogecoin (DOGE) $ 0.165385 5.86%
tron
TRON (TRX) $ 0.228161 3.76%
staked-ether
Lido Staked Ether (STETH) $ 1,888.93 2.93%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 81,687.89 3.16%
the-open-network
Toncoin (TON) $ 3.63 3.86%
leo-token
LEO Token (LEO) $ 9.73 0.73%
chainlink
Chainlink (LINK) $ 13.58 3.99%
usds
USDS (USDS) $ 0.999912 0.02%
stellar
Stellar (XLM) $ 0.269204 2.65%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,259.84 3.14%
pi-network
Pi Network (PI) $ 1.13 15.62%
hedera-hashgraph
Hedera (HBAR) $ 0.184846 4.91%
avalanche-2
Avalanche (AVAX) $ 18.46 2.80%
shiba-inu
Shiba Inu (SHIB) $ 0.000012 5.78%
sui
Sui (SUI) $ 2.26 4.65%
mantra-dao
MANTRA (OM) $ 6.92 0.74%
litecoin
Litecoin (LTC) $ 88.22 5.97%
bitcoin-cash
Bitcoin Cash (BCH) $ 331.48 3.02%
polkadot
Polkadot (DOT) $ 4.33 2.14%
bitget-token
Bitget Token (BGB) $ 4.57 2.99%
ethena-usde
Ethena USDe (USDE) $ 0.999477 0.04%
weth
WETH (WETH) $ 1,890.63 3.01%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.03%
hyperliquid
Hyperliquid (HYPE) $ 13.42 1.32%
whitebit
WhiteBIT Coin (WBT) $ 28.20 1.09%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,008.36 2.99%
monero
Monero (XMR) $ 206.16 2.59%
uniswap
Uniswap (UNI) $ 6.17 3.14%
susds
sUSDS (SUSDS) $ 1.05 0.12%
dai
Dai (DAI) $ 0.99977 0.04%
aptos
Aptos (APT) $ 5.26 2.98%
okb
OKB (OKB) $ 50.46 0.18%
near
NEAR Protocol (NEAR) $ 2.53 5.68%
pepe
Pepe (PEPE) $ 0.000007 9.34%
mantle
Mantle (MNT) $ 0.805774 2.57%
internet-computer
Internet Computer (ICP) $ 5.67 5.61%
gatechain-token
Gate (GT) $ 21.59 1.77%
tokenize-xchange
Tokenize Xchange (TKX) $ 32.90 0.13%
ethereum-classic
Ethereum Classic (ETC) $ 17.36 3.79%
ondo-finance
Ondo (ONDO) $ 0.81622 7.41%
aave
Aave (AAVE) $ 167.27 5.12%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 81,852.93 3.16%