There’s been no scarcity of rumors about Apple’s supposed intentions of buying an AI search firm, akin to Perplexity, to assist it catch up within the AI race. And whereas many appear to agree that this could be at the least a partial resolution to Apple’s issues, Morgan Stanley isn’t that satisfied.
In an investor be aware printed at present (by way of AppleInsider), Morgan Stanley analyst Erik Woodring states that it’s “misguided” to suppose that Apple ought to purchase an AI search engine, as it isn’t the corporate’s intention to compete within the search market.
The be aware acknowledges Apple’s struggles on this area, and states that whereas the September quarter may even not deliver many Apple Intelligence-related updates, Apple’s capability to capitalize on AI-driven options stays a long-term play.
A optimistic outlook on the upcoming fiscal Q3 report
Apple is ready to launch its fiscal Q3 2025 earnings outcomes on July 31. Morgan Stanley expects them to point out stable efficiency throughout {hardware} and providers.
The agency has raised its income forecast for the quarter to $90.7 billion, up 5.8% year-over-year, citing stronger-than-expected iPhone shipments, larger common promoting costs, and continued energy in iPad and Mac gross sales.
Providers are additionally anticipated to be a spotlight, regardless of investor considerations from the current App Retailer injunction, added to Apple’s determination to not problem steering throughout its final earnings name. Morgan Stanley sees no indicators of a slowdown, and now initiatives Providers income will develop 11.6% year-over-year.
Within the be aware, Woodring maintains Apple’s Obese score, that means he believes the inventory can nonetheless outperform the broader market. He set a $235 value goal, above the current value targets set by HSBC ($220), and JPMorgan ($230).
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