Apple Adds Two New Risk Factors

Global consumer electronics and software company Apple (AAPL) is making headlines after unveiling its latest MacBook Pro and iPhone.

Don't Miss Our Christmas Offers:

Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

The company also provides software services including Apple Pay, Apple Music, and iCloud storage service. (See Insiders’ Hot Stocks on TipRanks)

With this in mind, we used TipRanks to take a look at the newly added risk factors for Apple.

Q4 Financial Results

Apple reported revenues of $83.4 billion for Q4 2021 ended September 25, representing 29% year-over-year growth and posted earnings per share (EPS) of $1.24. (See Apple stock charts on TipRanks)

The company plans to distribute a quarterly cash dividend of $0.22 per share on November 11 to shareholders on record as of November 8.

Risk Factors

Apple carries 28 risk factors, according to TipRanks’ Risk Factors tool. The company introduced two new risk factors in its fiscal year 2021 annual report.

Apple has informed investors that some of the digital content offered to its customers comes from third-party suppliers. If the company’s content isn’t appealing to customers or isn’t reasonably priced, it could impact the business.

What’s more, the company told investors that it is subject to antitrust probes in Europe and other places over App Store terms. Furthermore, these probes could result in fines and orders to change its App Store business practices, which could hurt its business and financial condition.

Apple also told investors that its commercial arrangements with other companies may be subject to investigations and lawsuits, the outcome of which could harm its reputation, reduce demand for its products, and cause revenue loss.

Analysts’ Take

After Apple’s Q4 earnings report, Bernstein analyst Toni Sacconaghi reiterated a Hold on Apple stock with a price target of $132. Sacconaghi’s price target suggests 11.88% downside potential.

Consensus among analysts is a Strong Buy based on 20 Buys and 6 Holds. The average Apple price target of $170 implies 13.48% upside potential to current levels.