On a day when tech stocks got clobbered — the Nasdaq fell 1.63%, the S&P 500 slipped 0.27%, and technology was the worst-performing sector, down 2.6% — Apple Inc. (Apple (AAPL)) decided to do its own thing. Shares rose more than 4% on Thursday, a standout performance that caught the attention of traders and analysts alike.
What's behind the move? A fresh dose of optimism from Bank of America Securities analyst Wamsi Mohan, who reiterated a Buy rating and a $380 price target on the stock. Mohan's thesis rests on three pillars: services growth, capital returns, and the long-term promise of artificial intelligence.
App Store and Services: The Cash Machine Keeps Humming
Mohan highlighted that Apple's App Store revenue grew 3.2% year over year to $8.8 billion in the full fiscal third quarter of 2026. Total iPhone and iPad downloads edged up 1.3% to 8.7 billion, and the dollars-per-download metric rose 1.9% to $1.01. That's a sign that Apple is getting better at monetizing its massive user base.
Bank of America models 14% year-over-year growth for Apple's total services revenue in the fiscal third quarter. That's a big deal because services carry higher margins than hardware and provide a recurring revenue stream that investors love. Mohan's $380 price target is based on 37 times calendar 2027 estimated EPS of $10.27.
AI and New Products: The Upside Story
Mohan sees Apple as a potential winner in edge AI — that's artificial intelligence that runs on devices rather than in the cloud. He pointed to Apple's new Siri AI architecture, combined with its custom silicon, as a key enabler for future hardware-driven and AI-powered monetization. Think smarter iPhones, better user experiences, and new revenue streams.
He also noted that the Supreme Court's decision to hear Apple's appeal in the Epic Games case is a constructive development. Apple is fighting to protect its App Store economics, and a favorable ruling could remove a lingering regulatory overhang.
Strong capital returns — Apple is famous for its buybacks and dividends — add to the bullish case.
The Technical Picture: Still Looking Good
Apple's stock is trading at $306.64, about 4.3% above its 20-day simple moving average of $294.76 and 13.6% above its 200-day moving average of $270.69. The 20-day average remains above the 50-day average, which is a classic sign of an uptrend. Momentum indicators like the MACD are also above their signal lines, suggesting buying pressure is still in control.
The next resistance level is around $317.50, close to the stock's 52-week high of $317.40. If Apple can break through that, it could have room to run. On the downside, initial support sits near $287.50, where the 20-day and 50-day moving averages cluster.
Earnings: The Next Big Catalyst
Apple is scheduled to report quarterly results on July 30. Wall Street expects earnings of $1.89 per share, up from $1.57 a year earlier, on revenue of $108.86 billion compared with $94.04 billion in the year-ago period. That's a solid growth trajectory, though the stock's valuation — about 35.6 times earnings — reflects high expectations.
Analysts are broadly positive. Evercore ISI maintained an Outperform rating with a $365 price target on June 25. KGI Securities downgraded the stock to Hold with a $315 target on June 22. Bank of America kept its Buy rating and $380 target on June 18. The consensus seems to be that Apple's services and AI story are worth paying up for.
For now, Apple is proving that even in a tech sell-off, a strong narrative and solid fundamentals can carry the day. Whether that holds through earnings season is the next question.
