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Apple, Inc. AAPL reported on Thursday forecast-beating results for its September quarter, and it came as a welcome relief among some high-profile tech disappointments.
Loup Funds co-founder Gene Munster attributed the tech rout seen in the aftermath of some disappointing tech earnings to investors placing more value on “today’s performance” than on “estimates of future growth.”
With Apple, investors buy both performance and potential, Munster said. Cupertino reported 8% revenue growth, and 4% earnings growth, and effectively guided December quarter revenue and earnings in line with expectations, he noted.
See also: Apple Analyst Continues To Recommend Owning Stock Despite Reducing Price Target — Here’s Why
“Consumers need Apple’s products,” the venture capitalist said, adding that its products, once thought of as a luxury, have become a necessity. This is evident from over one billion users upgrading their devices on a continuum, he noted.
“For consumers, the decision to upgrade has become less about getting the latest features and more about maintaining an operable and reliable smartphone,” Munster said.
Although Apple refrained from discussing optionality on the earnings call, Munster said the company has growth optionality in three potential addressable markets, namely health, augmented reality and auto.
“One of these three opportunities will likely come to fruition and set up the company for another decade of solid performance,” he added.
Apple climbed 7.56% on Friday before settling at $155.74, according to Benzinga Pro data.
Read Next: How to Buy Apple (AAPL) Stock
Photo: Courtesy of Fortune Photo on flickr
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Image and article originally from www.benzinga.com. Read the original article here.