Apple's (AAPL) - Get Report App Store revenue rose 25.8% year-over-year in August, according to Sensor Tower, representing the strongest monthly year-over-year growth since February 2018. The figure was cited in an analyst report from Morgan Stanley that expressed optimism about the App Store's performance.
"Even considering the expected FX headwind, App Store revenue is on track to beat our September quarter forecast of +18% Y/Y with compares becoming easier in the month of September, Morgan Stanley analyst Katy Huberty wrote in a note published late on Thursday. "Quarter-to-date through August, we estimate the App Store has generated $2.9B in net revenue, up 22.4% Y/Y."
Morgan Stanley has an overweight rating and $247 price target on Apple, representing a potential upside of 16% from the stock's previous closing price on Thursday of $213.28.
Apple shares were flat in trading Friday.
The nearly 26% increase in August revenue was an acceleration from the 18.9% revenue growth the App Store recorded in July, according to Sensor Tower's data.
Sensor Tower's data showed that each of the App Store's 10 largest markets showed year over year growth acceleration from July, while 16 of 23 App Store categories also showed month-to-month acceleration.
The Store's entertainment category, which is the second largest next to gaming, posted 28% year over year growth in August, a big jump from the 8.3% growth it experienced in July.
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