Meta Platforms (FB) - Get Free Report may be the company with half the word “metaverse” in its name, but will Apple (AAPL) - Get Free Report be the true beneficiary of the technology word’s latest big trend?
Investors and analysts are talking up Apple’s potential to exploit the metaverse, which consists of digital alternate realities, The Wall Street Journal reports.
The enthusiasm has helped Apple stock soar 23% over the past three months, hitting a record $182.88 on Jan. 3. It recently traded at $175.83, up 0.4%.
The Cupertino, Calif., tech giant hasn’t said much about its plans for the metaverse, but Chief Executive Tim Cook has said it will be vital for the company’s future.
Meanwhile, “Many analysts are pointing to Apple’s potential to diversify away from its core iPhone business into other revenue generators like augmented and virtual reality, metaverse as well as autonomous vehicles,” Dan Morgan, a senior portfolio manager at Synovus Trust, told the Journal.
To be sure, “these segments are many years away from contributing significantly to Apple’s total revenue,” he noted.
As for the iPhone, Wedbush analyst Daniel Ives said last week that while supply-chain shortages have dominated Wall Street conversation around Apple in the holiday quarter, he’s focused on the robust consumer demand story shaping up for iPhone 13 into 2022, according to The Fly.
Based on his supply-chain checks, Ives says demand outstripped supply for Apple by roughly 12 million units in the December quarter.
He maintained his outperform rating and a price target of $200 on the shares, with his bull case at $225.