CNBC reports that on Wednesday Morgan Stanely says that Apple could climb to $340 in the market thanks to “strong” App Store performance, per the report:
Robust App Store sales will buoy Apple’s revenues this quarter and could lead its stock higher over the next year as the company’s services segment continues to post healthier top-line growth, Morgan Stanley told clients Wednesday.
Analyst Katy Huberty wrote that preliminary data show that App Store sales grew 39% in May, representing the strongest year-over-year growth for the platform since April 2017.
Quarter to date through May, App Store net sales are up 35% year over year, far outpacing Morgan Stanley’s forecast of 18% growth for the entire June quarter.
The bank makes the prediction given App store sales have skyrocketed thanks to COVID19, Huberty says, via AppleInsider that COVID19 has “been a tailwind to the app economy, as consumers have been forced to spend more time than usual inside their home, driving an acceleration in App Store download and net revenue growth.”