Apple shares rise 4.3%: Wall Street sees underestimated potential

Apple shares rise 4.3%: Wall Street sees underestimated potential

On Thursday, Apple's share price rose 4.3 percent to $175, marking its best trading day since May 5, 2023. Wall Street believes investors are underestimating Apple's full potential. According to BofA analyst Wamsi Mohan, Apple's long-term gross margin potential across both products and services continued to not be adequately reflected by the stock market.

In 2018, Wall Street predicted gross margins of 39 percent for Apple in 2023. In fact, the company exceeded those forecasts and posted a gross margin of 44 percent last year. This positive development highlights Apple's strength and growth potential, which may not have been sufficiently appreciated by many market participants.

Wamsi Mohan's analysis emphasizes that the stock market has already underestimated Apple several times and should be more cautious about the company's future development. Apple's past performance and ability to exceed expectations suggests that the company could continue to be successful and has long-term growth potential. The stock market's positive reaction to the recent share price increase suggests investors' confidence in Apple's future.