The publication of Apple’s quarterly report, controversial in its content, in early May contributed to the further growth of the company’s shares, which began in the twenties of April. In the following days, investors were optimistic about the introduction of artificial intelligence functions developed by Google or OpenAI into the Apple ecosystem.
Revenue Projections and Upcoming WWDC 2024
In the current quarter, Apple management expects an increase in revenue by literally a couple of percent. The main intrigue for investors remains the WWDC 2024 event for developers scheduled for mid-June, at which new functionality of proprietary software will be unveiled. Apple is expected to announce a partnership with either OpenAI or Google by then, as their artificial intelligence systems could be integrated with the Siri voice assistant or the search algorithms of the company’s Safari browser, respectively. OpenAI’s demonstration of the new GPT-4o language model this week only bolstered investor enthusiasm for the technology’s upcoming integration into Apple services. Google also demonstrated its own progress in the field of AI this week, so investors are looking forward to fresh news about its cooperation with Apple.
Stock Performance and Investor Sentiment
From the beginning of the year until the twentieth of April, the stock price managed to decline by almost 14%. However, after the publication of quarterly reports and against the backdrop of news about probable cooperation with OpenAI, it managed to grow by 12%. In addition, investors were attracted by statements from Apple management about their intentions to spend a record amount to buy back the company’s shares, notes NIXsolutions.
Former Callesen Wealth Management analysts interviewed by Bloomberg emphasize that it is still difficult to quantify the positive impact of artificial intelligence on the further dynamics of Apple’s revenue. It’s not enough to introduce new technologies; they still need to be properly monetized. We’ll keep you updated on any further developments in this area as they unfold.