How Could Apple’s Highly Anticipated iPhone 16 Launch Event Affect Its Stock?

Key Points

Apple is expected to introduce the highly anticipated iPhone 16, powered by artificial intelligence (AI), at an event on Monday.
Morgan Stanley analysts suggested that the new devices and the integration of Apple Intelligence will benefit the iPhone maker, but Apple’s stock price could fall on the day of the event.
“Historically, the iPhone launch event has been a news selling event,” analysts wrote, noting that stocks typically outperform the market in the months following a new iPhone launch.
But Bank of America analysts said artificial intelligence could be key to breaking Apple’s cycle of underperforming iPhone launch dates.

(in front of) AppleAAPL) The much-anticipated event on Monday, Expected to be announced iPhone 16 supercharged artificial intelligence (AI)Analysts warned investors not to set their expectations too high.

Historically, Apple’s stock price has S&P 500 Morgan Stanley analysts said on the day of the iPhone launch event that interest in artificial intelligence could help the stock defy historical patterns.

iPhone Launches Have Historically Been ‘Selling News’ Events

Despite the positive sentiment surrounding the market iPhone maker’s AI opportunityMorgan Stanley analysts said the incident could send Apple shares lower on Monday, but new devices and artificial intelligence integration are expected to lead to better performance in the coming months.

“Historically, the iPhone launch event has been a news selling event,” the analysts wrote, noting that Apple stock tends to underperform the S&P 500 on the day of iPhone launch events, while “modestly outperforming” the market in the three months following.

Bulls are betting on AI-powered iPhone 16 Start the “gold upgrade cycle” Morgan Stanley, which sent Apple shares higher, said investors should “get through” the launch event before expecting to see significant gains related to artificial intelligence.

Can an AI-Powered iPhone Break This Cycle?

But Bank of America analysts suggested this iPhone launch event could be different given the wildcard AI opportunity.

“If Apple surprises with a compelling demo of Apple Intelligence/third-party integrations or any price increase, the stock could outperform past events,” the analysts wrote.

Morgan Stanley analysts said they don’t expect the market to react any differently to Apple’s event on Monday, but they see “the potential for Apple to outperform historical seasonality toward the end of the year as pent-up demand is unleashed by the launch of iPhone 16 and Apple Intelligence.”

Apple shares closed up 0.7 percent at $222.38 on Thursday and have gained more than 15 percent since the beginning of the year.