We have remained bullish on Apple stock for a while now and we believe that AAPL stock looks good for 2018 as well.
Apple stock has been part of our top stocks to buy portfolio (which has outperformed the Nasdaq Composite by over 100%) for several quarters.
Coming to the services segment tailwind, it’s not just the growth of the service segment, but also the strong margins which will be key to driving Apple stock higher from here.
A Piper Jaffray study estimates that the services segment has a gross margin of around 60%. Apple Pay and Apple music are also showing strong growth.
A recent report suggested Apple pay has even bettered
Paypal (NASDAQ:PYPL) to become the most accepted alternative payment method in terms of retail acceptance in North America. All the trends look very good for the company’s services segment.
With the strong growth prospects ahead, the tech giant could achieve Tim Cooks target of doubling services revenues by 2020 even much earlier.
iPhone X hit or miss, Apple stock could benefit big time from the services segment tailwind in 2018.
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