App Store spending increased by 13%, setting a record, and Goldman Sachs supports Apple with a "Buy" rating

Zhitong
2025.08.05 06:29
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Goldman Sachs reiterated its "Buy" rating on Apple Inc. and maintained a target price of $266, as App Store spending grew 13% year-on-year, marking the fastest monthly growth since November 2024. Despite market concerns about users shifting to third-party payments, the growth rate of App Store spending continues to accelerate. Apple's revenue for the third quarter of fiscal year 2025 reached $94 billion, with earnings per share exceeding expectations, prompting analysts to raise their target prices

According to the Zhitong Finance APP, in the context of strong performance in the App Store, Goldman Sachs reiterated its "Buy" rating on Apple Inc. (AAPL.US) and maintained a target price of $266. This view aligns with the overall sentiment among analysts—according to InvestingPro data, 21 analysts have recently raised their earnings expectations for Apple, with target prices ranging from $175 to $300.

Data from Sensor Tower shows that spending in the Apple App Store is expected to grow by 13% year-on-year in July 2025, an increase from 12% in June, marking the fastest year-on-year growth for a single month since November 2024.

This growth trend is consistent with Goldman Sachs' expectations for Apple's service revenue in the fourth quarter of fiscal year 2025, which is projected to increase by 13% year-on-year, in line with Apple's own performance guidance.

It is noteworthy that despite market concerns about users potentially turning to third-party payment options, the growth rate of App Store spending in the U.S. market accelerated from 12% in June to 13%. Goldman Sachs estimates that the App Store contributes 20% to 25% of Apple's service revenue, making it the largest segment within this business area.

Recently, Apple announced its third-quarter report for fiscal year 2025, with revenue reaching $94 billion and earnings per share (EPS) of $1.57, both exceeding analyst expectations, with revenue surpassing expectations by 5.66% and EPS exceeding expectations by 10.56%.

In response, Barclays raised its target price for Apple to $180 but maintained a "Underweight" rating, noting that sales of iPhones and Macs were significant drivers of the quarter's better-than-expected performance; Bank of America also raised its target price to $240, citing that Apple's quarterly performance and guidance were above market consensus, emphasizing strong iPhone shipment performance.

Morgan Stanley also raised its target price to $240, maintaining an "Overweight" rating, due to Apple's performance exceeding expectations across multiple dimensions, including products, services, and gross margins in the June quarter. However, despite the positive news, Apple's stock price still saw a slight decline in after-hours trading. These latest developments reflect that Apple is currently in a phase of steady performance growth and positive analyst sentiment

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