Apple stock drops as Morgan Stanley warns of ‘broad based’ App Store slowdown

Apple shares dropped Friday after analysts at Morgan Stanley cautioned that App Store revenue faces a “broad based” slowdown, creating a “downside risk” for Services revenue growth for the current quarter.

Martin Baccardax for TheStreet:

Morgan Stanley analyst Katy Huberty, one of Wall Street’s most-respected Apple watchers, noted that App Store revenues were up 6% from last year over the two months ending in May, but a tougher June comparison could mean Apple will struggle to meet its the bank’s target of 15% net revenue growth for the quarter.
Huberty, who has an ‘overweight’ rating with a $195 price target on Apple stock, thinks app store revenue will speed up into the final months of the year.
Apple CEO Tim Cook told investors in April that Covid and supply chain disruptions around what he called the “Shanghai corridor”, as well as Russia’s war in Ukraine, would clip between $4 billion and $8 billion from current quarter revenues, marring an otherwise impressive second quarter earnings beat.

MacDailyNews Take: Kudos to Huberty for causing the weak-kneed to hobble for the exits with much ado about nothing, giving the smart AAPL investors a shot at another nice entry point!
As we’ve long said, Wall Street is a game: play it well or don’t play it at all. – MacDailyNews, March 20, 2007 (on which day AAPL closed at the split-adjusted price of $2.79 per share)
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