For investors, the stakes are high for Apple to deliver at its developer conference this week.
Its Apple Intelligence product has lagged behind other generative AI models such as those from Google-parent Alphabet , Meta Platforms and OpenAI.
Stock catch up A positive catalyst also means Apple could start to play catch up to the other Magnificent Seven stocks.
“So, the impact it has on Apple is, if we don’t hear anything exciting or intriguing next week, then Apple, the stock, will not have a positive catalyst.”
Friday capped off a winning week, with Apple rising 1.5% in the most recent five days, extending its latest move higher to a third week in four.
At this week’s developer conference, investors have a lot riding on Apple’s performance. This week, Apple is hosting its annual Worldwide Developers Conference in Cupertino, California. CEO Tim Cook gave the keynote address on Monday, which many believe will introduce an AI strategy that is compelling enough to start a new iPhone replacement cycle. For a stock that has plummeted this year and lost its position as the most valuable public company in the world after suffering a setback due to President Donald Trump’s tariffs, that will be crucial. The iPhone manufacturer is now more than 20% below its peak, which it reached in late December, and is now behind Microsoft and Nvidia in terms of market value. Art Hogan, chief market strategist at B, stated that WWDC “is important every year, but it’s probably as important as it’s ever been.”. Riley Wealth Management. . Apple has been one of the largest underperformers of the large-cap technology stocks, so that will be instructive. Reversing the narrative AAPL YTD mountain Apple, year to date Investors are looking to the developer conference as a chance for Apple to change the narrative, particularly since some employees are worried that the company may experience an existential crisis in the future due to its nascent AI offering. Compared to other generative AI models like those from Alphabet, the parent company of Google, Meta Platforms, and OpenAI, its Apple Intelligence product has fallen behind. Although Apple has a history of creating new features and a large following of devoted customers, users are still certain that the company has enough time to get it right. “There are five, six, seven, and eight choices to be made there when someone asks, ‘What is your favorite chatbot at the moment? Who are you using agentically for artificial intelligence?'” Hogan stated. You usually only have to choose one source from which to access them. On the iPhone, it says, “Well, this is what I use.”. This is my iPad’s current setup. I use this on my Mac Book. “I think it will be exciting because they have a sizable and devoted user base. They can now talk to us next week about what they’re going to be delivering to that user base,” Hogan stated. “And for the first time, they will have fascinating news to discuss regarding artificial intelligence. Stock catch up: If a favorable event occurs, Apple may begin to overtake the other Magnificent Seven stocks. Even though investors have shifted back to growth stocks overall, the iPhone maker is the only megacap tech company that has seen a decline this quarter, down 8%. “Apple can help lift the market if, in fact, it delivers a story in WWDC that is constructive around its latest rollout of devices,” Hogan stated. Others on the street, though, are not as enthusiastic. Due to the iPhone maker’s high valuation and slower growth, Needham analyst Laura Martin downgraded Apple to hold from buy this week and lowered her price target. She also worries that Apple won’t have anything very noteworthy to announce at WWDC, citing rumors from blogs that have been critical of the tech giant. Martin remarked, “We have a sort of comprehensive summary of features of what they’re going to say at WWDC next week, and what they’re going to announce for iPhone 17 features, and neither of those feel it will be compelling enough to drive owners to upgrade their iPhones.”. The effect on Apple is that the stock of the company will not experience a positive catalyst if we don’t hear anything fascinating or exciting the following week. Nonetheless, Samik Chatterjee, an analyst at JPMorgan, noted that Apple typically has a strong season from June to mid-September since anticipation for new iPhone releases typically spikes during this time. With Apple up 1 point 5 percent over the last five days, Friday concluded a successful week and extended its most recent upward move to the third week in a row.
