TLDR
- Apple stock reached $223.19, rising 0.48% and outperforming the S&P 500
- Apple Card drawing competitive bids with Visa offering $100 million to replace Mastercard
- Earnings report expected April 24, forecasting $1.61 EPS (5.23% year-over-year increase)
- Annual estimates project earnings of $7.26 per share with 3.94% revenue growth
- Apple currently holds a Zacks Rank of #3 (Hold) with a premium valuation compared to industry averages
Apple Inc., the maker of iPhones, iPads, and other technology products, continues to attract attention from investors and financial services companies despite recent market volatility. The tech giant’s stock climbed to $223.19 in the latest market close, showing a 0.48% increase compared to the previous day.
This performance exceeded the S&P 500’s gain of 0.38% for the same period. Meanwhile, the Dow Jones Industrial Average lost 0.03%, while the tech-heavy Nasdaq added 0.87%.
Despite this recent positive movement, Apple’s stock has declined by 6.68% over the past month. This drop outpaces the S&P 500’s 5.59% loss but still performs better than the overall Computer and Technology sector’s 8.94% decline during the same timeframe.
Investors are eagerly awaiting Apple’s upcoming earnings release, scheduled for April 24, 2025. Forecasts indicate the company will report earnings per share (EPS) of $1.61, representing a 5.23% increase from the same quarter last year.
The consensus estimate calls for quarterly revenue of $93.67 billion. This would mark a 3.22% increase from the year-ago period, showing continued growth despite challenging market conditions.
Financial Service Giants Compete for Apple’s Business
Apple has become the center of attention in a high-stakes competition among the world’s largest financial services companies. Major players are vying for partnerships with the tech giant’s financial products, particularly the Apple Card.
Visa has reportedly offered approximately $100 million to Apple to replace Mastercard as the network supporting Apple Card payments. American Express is also competing to become the card’s payment processor, according to recent reports.
This substantial offer suggests Visa sees significant potential in the Apple Card’s future, despite its somewhat uneven history. Apple initially launched the credit card in 2019 in partnership with Goldman Sachs, but that collaboration ended in 2023 when the bank stepped back from consumer lending.
Mastercard maintained its position as the payment processor after the Goldman Sachs partnership concluded. Since then, Apple has been evaluating offers from both credit card networks and banks seeking to form new partnerships.
JPMorgan Chase and Synchrony Financial are reportedly competing to become the new card issuer. The appeal of partnering with Apple is clear for financial institutions, given the company’s trusted brand and extensive user base.
Market Position and Growth Outlook
For the annual period, analysts estimate Apple will achieve earnings of $7.26 per share and revenue of $406.43 billion. These projections represent increases of 7.56% and 3.94%, respectively, compared to the previous year.
Investors should note recent shifts in analyst projections for Apple. The Zacks Consensus EPS estimate has moved 0.13% lower over the past month, potentially reflecting near-term business trends.
Apple currently holds a Zacks Rank of #3, indicating a “Hold” recommendation. The company trades at a Forward P/E ratio of 30.58, which represents a premium compared to its industry average of 10.59.
The company’s PEG ratio stands at 2.21, higher than the Computer – Micro Computers industry average of 1.5. This suggests investors are paying a premium for Apple’s expected growth.
Apple has been diversifying its revenue streams in recent years, introducing various financial services as it faces slowing growth in smartphone sales. Early last year, the company reported that its Apple Card had reached 12 million users, with approximately $20 billion in outstanding balances.
However, not all of Apple’s financial ventures have succeeded. Last year, the company discontinued its buy now, pay later service shortly after entering this area of consumer finance.
Apple stock was pointing 0.6% lower ahead of market open on Wednesday, in line with broader market movement ahead of anticipated tariff announcements from President Donald Trump.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
