Yahoo Finance Apple's stock could be a 'table-pounder' but it'll take years to know for sure how successful the Vision Pro really is, analysts say
Apple unveiled its new mixed-reality headset, the Vision Pro, on Monday.
The stock could be a 'table-pounder,' some analysts said. Others think the 'good news' is already priced in.
It will take years to know for sure how successful the Vision Pro really is, tech investor Gene Munster said.
Apple unveiled its new mixed-reality headset, the Vision Pro, on Monday. The stock rose nearly 2% to hit an all-time high before the product was announced, but is now trading 0.76% lower at $178 after hours.
The tech giant, whose market capitalization currently stands at $2.85 trillion, unveiled its long-awaited first spatial computer during its Worldwide Developers Conference. The device combines artificial intelligence with augmented reality and launches Apple into competition with Meta's lineup of AR/VR headsets.
Apple stock could be a "table-pounder" and the debut of its mixed-reality headset could drive up the company's valuation dramatically — still, some analysts maintain that it will take years to know for sure how successful the new augmented reality headset will be, according to analysts.
"I understand why shares of $AAPL have pulled back 2% since the announcement. Vision Pro is something that investors will need to try before they believe. There are so many questions I have, that may take months to answer as content and applications build," tech investor Gene Munster tweeted late on Monday.
—Gene Munster (@munster_gene) June 5, 2023
Wedbush's Dan Ives thinks Apple's stock is a continued "table-pounder" and its Vision Pro debut is the company's first step on artificial intelligence because developers will use the product to build AI-driven apps.
"This is just starting the next leg from a services perspective as well as a mini supercycle. You could argue in the sum of its parts, this is a $3.5 trillion dollar valuation or more," he told CNBC on Monday.
Meanwhile, Goldman Sachs analyst Mike Ng said Apple's stock could jump nearly 30% as the new gadget will draw in a new user base and encourage multiple purchases as it develops.
He also said Apple has an "attractive" valuation now compared to its own history and relative to other mega-cap tech companies.
"Apple's success in premier hardware design and resulting brand loyalty has led to a growing installed base of users that provide visibility into revenue growth by reducing customer churn, lowering customer acquisition costs for new product and services launches, and encouraging repeat purchases," he wrote in a note, according to Marketwatch.
However, others like analysts at D.A Davidson think the stock has already priced in the "good news" from Vision Pro's launch.
"We believe there are important structural challenges for Apple when it comes to consumer adoption of AR/VR hardware, which could limit the near-term impact on its sales and profitability," Tom Forte, a senior research analyst at the firm, wrote in a Monday note, per Marketwatch.
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