The Zacks Analyst Blog Highlights Apple, Amazon, Microsoft and Alphabet

For Immediate Release

Chicago, IL – September 5, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Apple AAPL, Amazon AMZN, Microsoft MSFT and Alphabet GOOGL.

Here are highlights from Thursday’s Analyst Blog:

Buy, Hold or Sell Apple (AAPL) Stock Ahead of Sept. 9 Event?

Apple is set to host a special event on Sept. 9 in which the company will likely launch the latest versions of iPhone. According to a report from Yahoo! Finance that cited Bloomberg analyst Mark Gurman, Apple is expected to launch its much-anticipated slimmer iPhone Air in the event. Meanwhile, per CNN, which cited analyst Ming-Chi Kuo, Apple is anticipated to “retire the Plus model” from the upcoming portfolio. Apart from the iPhone, Apple may launch the latest version of Watch and AirPod.

In terms of software, Apple will make iOS 26, iPadOS 26, macOS Tahoe 26, tvOS 26, visionOS 26, and watchOS 26 available, along with a new software design crafted with a material called Liquid Glass. New Apple Intelligence features like Live Translation, updates to visual intelligence, as well as enhancements to Image Playground and Genmoji, will be available with these updates. Powered by Apple Intelligence, Apple Wallet can now automatically identify, summarize and display order tracking details from emails sent from merchants or delivery carriers.

In April, Apple expanded the availability of Apple Intelligence with iOS 18.4, iPadOS 18.4 and macOS Sequoia 15.4 updates in new languages, including French, German, Italian, Portuguese (Brazil), Spanish, Japanese, Korean and Chinese (simplified), as well as localized English for Singapore and India. By the end of 2025, Apple Intelligence will be available in eight more languages: Danish, Dutch, Norwegian, Portuguese, Swedish, Turkish, Chinese (traditional) and Vietnamese, driving growth opportunities.

Growing Adoption of Apple Intelligence to Boost AAPL Prospects

Apple is benefiting from the growing adoption of Apple Intelligence that is infused across iPhone, Mac and iPad. The company reported record June quarter revenues in more than two dozen countries and regions, including the United States, Canada, Latin America, Western Europe, the Middle East, India and South Asia. The robust performance was driven by double-digit growth across iPhone (13.5% year over year), Mac (14.8%) and Services (13.3%).

For iPhone, Apple saw double-digit growth in emerging markets, including India, the Middle East, South Asia and Brazil. Services grew double-digit in both developed and emerging markets. Apple Intelligence is playing a key role in driving this growth, thanks to the addition of more than 20 features that include visual intelligence, cleanup and powerful writing tools.

Apple shares have appreciated 17.5% in the past month, driven by robust third-quarter fiscal 2025 results, a steady outlook despite tariff-related headwinds and increasing U.S. investments (currently $600 billion). Although Apple continues to play catch-up in the AI domain against Amazon, Microsoft and Alphabet, the growing adoption of Apple Intelligence reflects encouraging progress. Year to date (YTD), Apple shares have edged down 4.7%, underperforming the broader Zacks Computer and Technology sector’s return of 14.1% and the peer trio. YTD, Microsoft, Alphabet and Amazon shares have appreciated 19.9%, 21.9% and 3.1%, respectively.

AAPL shares are now trading above the 50-day and 200-day moving averages, indicating a bullish trend.

Apple’s Q4 Revenues to Grow Amid Tariff Threats

AAPL expects the September quarter’s (fourth-quarter fiscal 2025) net sales to grow in the mid to high-single digit on a year-over-year basis. The company expects the Services segment year-over-year growth rate to be similar to that of the June quarter.

Tariffs are currently expected to have a negative impact of $1.1 billion in the fourth quarter of fiscal 2025. Apple expects a gross margin between 46% and 47% for the current quarter compared with a gross margin of 46.5% in the fiscal third quarter.

The Zacks Consensus Estimate for Apple’s fourth-quarter fiscal 2025 revenues is pegged at $100.8 billion, indicating 6.19% growth over the figure reported in the year-ago quarter. The consensus mark for earnings has increased by a penny to $1.74 per share over the past 30 days, indicating 6.1% growth from the figure reported in the year-ago quarter.

Apple Inc. price-consensus-chart | Apple Inc. Quote

AAPL Shares Are Overvalued

Apple’s stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.

AAPL is trading at a forward 12-month price/sales (P/S) of 8.28X compared with the sector’s 6.65X, Amazon’s 3.19X and Alphabet’s 7.7X. However, Microsoft’s P/S of 11.4X is higher than that of Apple.

Here Is Why AAPL Is a Hold Now

Apple’s iPhone sales are expected to benefit from upcoming launches and growing adoption of Apple Intelligence features. The company’s investments in expanding its manufacturing footprint in the United States are expected to help lower tariff-related headaches. Investors already holding AAPL shares should continue to do so based on these factors. However, stretched valuation and stiff competition in the smartphone segment are concerning for prospective investors.

AAPL currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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