Surprisingly optimistic quarterly report and buyback program cause Apple shares to rise

Apple creates a stir on the stock exchange: A quarterly report that outperformed expectations, combined with promising future forecasts, is fueling a strong tailwind for Apple shares. The announcement of a record-high stock buyback program further boosted investor confidence and drove the shares up by another 7 percent to a price of 185.00 US dollars on Friday – the highest level since February. Although Apple had to accept a decline in revenue in the second fiscal quarter and seems to be lagging behind competitors such as Microsoft and Nvidia in the development of artificial intelligence, statements regarding the current third quarter have positively surprised. Apple forecasts a revenue increase in the low single-digit percentage range and is particularly ambitious in the service segment and iPad sales. While Microsoft has surpassed Apple in terms of market capitalization, chip giant Nvidia, once known for graphics cards, has even overtaken Google parent Alphabet in stock market value, thanks in large part to its positioning as a leader in the field of AI. Industry experts have mixed opinions: while JPMorgan analyst Samik Chatterjee praises the focus on future AI innovations and sees the service business as the foundation for the current year, BofA analyst Wamsi Mohan was enthusiastic, venturing to assess that the stock is one of the top picks. Others, like Ingo Wermann from DZ Bank, see downsides, such as in the iPad and accessories division. Despite certain challenges, Apple seems to be setting the course for the future with a staggering 110 billion dollar share repurchase program. Investors are rewarding this – Apple is trimming its sails for growth.