UBS Reiterates Neutral on Apple (AAPL) as App Store Growth Slows

Core Viewpoint - Apple Inc. is facing challenges with slowing App Store growth momentum and tough December comparisons, leading to a neutral rating from UBS analyst David Vogt with a price target of $280.00 [1] App Store Revenue Performance - In November, Apple's App Store revenue grew approximately 6% on a reported basis, following growth rates of about 7% in September and 9% in October [2] - On a Foreign Exchange Neutral basis, App Store revenue increased an estimated 5% year-over-year, aided by favorable currency conditions [3] - The App Store is expected to face a 12% comparison hurdle in December, which is lower than the mid-teens comparisons from previous months but still considered challenging [3] - For the December quarter, reported App Store revenue is tracking at approximately 7% growth (around 6% on an FXN basis), indicating that mid-teens growth will be necessary for double-digit growth in the December 2025 quarter [3] Investment Perspective - While Apple is recognized for its potential as an investment, certain AI stocks are perceived to offer greater upside potential and lower downside risk [4]