Apple Inc.(NASDAQ: AAPL) the stock rose over 0.7% on January 5th, 2017 (as of 9:51 AM EST; Source: Google finance). The group is investing $1 billion in SoftBank Vision Fund to leverage upcoming technology. The technology giant has worked with SoftBank for many years and the new fund is expected to accelerate the development of technologies which is a part of Apple strategy. The fund is a joint effort between SoftBank and the government of Saudi Arabia’s Public Investment Fund (PIF) to invest in emerging technologies, including artificial intelligence and the Internet of Things. Moreover, a part of AAPL’s $1 billion investment, SoftBank is investing about $25 billion in the Vision Fund, while another $45 billion would be invested from Saudi Arabia.
Additionally, the SoftBank Vision Fund has plans to hold an initial close to its fundraising in a month, and the final close is expected in mid-2017. SoftBank’s has made a recent investment into U.S. startup OneWeb Ltd., that aims to use satellites to bring internet access to the rural areas, this also could be placed into the fund.
Guggenheim Securities initiated Apple stock research with a buy rating. The brokerage firm issued a price target of $140 which is an upside of over 20.4% as compared to the January 5th, 2017 (as of 9:51 AM EST; Source: Google finance). The analysts from Guggenheim reported that the group’s iPhone growth is slowing, but their innovation might partly offset this. iPhone 8 September release might offer some relief to Apple’s flat iPhone sales.
Meanwhile, the App Store started off on a strong note in 2017 with New Year’s Day being the busiest day. Developers revenue rose 40% to $20 billion in 2016 as compared to the prior corresponding year. App Store developers got over $60 billion since 2008, Only on New Year’s Day App store developers got over $240 million in purchases.
India remains a major target market for Apple but their demand for tax incentives to make iPhones in the country might not be considered.
AAPL stock has risen 13.7% in the last one year (source: Google Finance). According to tipranks.com, 27 analysts has covered the stock while the consensus recommendation is a “Strong Buy”. AAPL has an average price target of $134.31, which is a further upside of 15.7%.