An analyst note suggests regulation from the EU and the $2 billion fine may put pressure on Apple’s earnings per share, but its shift to AI will help keep the earnings multiple even at about 25x.
Apple is dealing with regulatory pressures and other unknowns
Apple is dealing with regulatory pressures and other unknowns
There’s a lot of uncertainty surrounding Apple, thanks to multiple competing forces. All eyes are on Apple’s push into AI after Project Titan was canceled, and the EU continues to take issue with Apple’s business practices.
According to a note viewed by AppleInsider from JP Morgan, Apple’s current 27x earnings per share is likely to be pushed down to 25x due to several factors surrounding the company. It emphasizes potential risk from regulatory scrutiny and the loss of a potential premium multiple due to entering the electric vehicle segment.
EU fine and shift to AI applying opposing forces to Apple’s value, holding it steady
EU fine and shift to AI applying opposing forces to Apple’s value, holding it steady