- Analysts largely had a "better than feared" reaction to Apple's (NASDAQ:AAPL) earnings report, which had some of the weakness priced in thanks to the preannouncement revenue cut earlier this month.
- Morgan Stanley (NYSE:MS) (Overweight): "Importantly, Apple made investors feel better about several recent debates - 1. weaker iPhone demand, 2. gross margin risk, and 3. Services growth deceleration."
- JPMorgan (NYSE:JPM) (Overweight): "Although yesterday’s announcement will do little in terms of addressing some of the medium-term concerns investors have relative to the drivers of revenue growth as the smartphone cycle matures, we believe book-ending the downside on volumes will help in driving investor focus back to the Services opportunity."
- Citi (Buy rating) notes that Apple isn't just a Services company but rather "an IT Hardware product company with great services which are attached to Apple products."
- Citi: "We recognize there are no immediate positive catalysts for the stock which is fine for a stock trading at a valuation of 13x PE or 11x PE excluding cash."
- Now read: Apple Earnings: The Next IBM (NYSE:IBM)
Original article