Should you invest in Apple stock in April?

By Michael Harris2 days ago

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  • Morgan Stanley and Goldman Sachs analysts are in disagreement over Apple Services revenue
  • Apple share price is trading above the $130 mark for the first time since mid-February
  • Traders buying Apple stock will now look to for a return to the area that hosts the all-time high near $145

Shares of Apple (NASDAQ: AAPL) soared to a 7-week high today as stocks keep printing fresh highs on recovery hopes.

Fundamental analysis: Morgan Stanley and Goldman Sachs have opposite predictions over Apple Services Revenue

Apple is set to report its revenue results around April 30 and Morgan Stanley and Goldman Sachs analysts are in disagreement over Apple Services revenue. Morgan Stanleys Katy Huberty is optimistic about Apples report while GS analyst Rod Hall is expecting a disappointment.

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Huberty increased her above consensus Services Revenue estimate by 2.9% to $65.7 billion from $63.8billion. The move comes as a result of “accelerating Google TAC related revenue” that flows through under the Licensing & Other segment.

…a linear regression analysis of our historical estimated Licensing & Other revenue with Google’s reported traffic acquisition costs (TAC) shows a very strong 0.94 correlation (0.88 R^2), suggesting that the search traffic related payments Apple receives from Google are a dominant driver of Licensing & Other revenue and the best way to forecast this revenue stream, Huberty said.

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