<div id="readability-page-1"><div><div><p>Shares of <strong>Apple Inc.</strong> <span>AAPL</span> remain one of 2025's biggest tech underperformers, lagging the Nasdaq 100 index by a wide 25% year-to-date, even as the iPhone-maker recently posted robust results that may suggest the selloff is disconnected from fundamentals.</p><ul> <li>AAPL stock is underperforming. Track live prices here. </li> </ul><p>As of August 5, Apple stock is down 18% year-to-date, failing to rebound despite a stronger-than-expected earnings report on July 31 and signs of accelerating growth in its Services segment. </p><p>Over the last 20 weeks, Apple has underperformed the tech-heavy Nasdaq 100 by 20%, one of its widest gaps in recent decades.</p><h3>Strong Third-Quarter Results Go Unrewarded</h3><p>Apple's fiscal third-quarter results, covering the period ended June 30, beat expectations across the board. The company reported earnings per share of $1.57, exceeding the consensus estimate of $1.438, marking a 12% increase from the same quarter last year.</p><p>Revenue came in at $94.04 billion, a 9% year-over-year gain and well above Wall Street’s forecast of $89.56 billion.</p><p>Despite this, shares barely reacted, reflecting what many see as investor fatigue with Big Tech or concerns over slowing AI innovation. </p><p>However, recent App Store data, which falls outside of the earnings window, may offer fresh support for bulls.</p><h3>App Store Spending Hits Highest Growth Rate Since 2024</h3><p>According to Goldman Sachs analyst <strong>Michael Ng</strong>, App Store revenue surged 13% year-over-year in July 2025, reaching $6.79 billion, up from $6.02 billion in July 2024. This marked an acceleration from 12% growth in June and the fastest pace since November 2024.</p><p>&#34;This is in line with our estimate for AAPL fiscal fourth quarter Services revenue growth of +13%,&#34; Ng said, adding that the App Store remains Apple's most significant contributor to Services, comprising an estimated 20% to 25% of that segment.</p><p>Spending in the U.S. increased by 13%, while China’s spending rose 6%, and the U.K.’s spending advanced 24%. Globally, App Store and Google Play Store combined saw spending rise 13% to $9.98 billion.</p><p>Games, which comprise 46% of App Store revenue, grew 3% year-over-year in July, bouncing back from flat growth in June. Entertainment apps rose 19%, while Photo and Video apps jumped 27%, though both decelerated slightly from the previous month. </p><p>Goldman Sachs holds a 12-month price target of $266, implying a 30% upside from current levels. </p><p>If App Store revenue is booming, seasonality adds another tailwind for Apple. The stock's technical history suggests that August is historically Apple's second-best-performing month, after July, with an average gain of 5.1% and a 63% winning rate over the last 30 years.</p><p>Read now: </p><ul> <li><strong>Markets Are Betting On Fed Rate Cuts – These Sectors Could Win Big</strong></li> </ul><p><em>Photo: Shutterstock</em></p></div></div></div>

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<p>Apple Inc. shares have underperformed the Nasdaq 100 by 25% year-to-date, despite strong fiscal third-quarter results, including a 12% increase in earnings per share and a 9% revenue gain. App Store revenue surged 13% year-over-year in July 2025, reaching $6.79 billion, indicating potential growth in Apple's Services segment. Goldman Sachs maintains a 12-month price target of $266 for AAPL, suggesting a 30% upside. Historically, August is a strong month for Apple stock, with an average gain of 5.1%.</p>

- Apple Inc. AAPL has underperformed the Nasdaq 100 index by 25% year-to-date, despite strong fiscal third-quarter results showing earnings per share of $1.57 and revenue of $94.04 billion.  
- App Store revenue grew 13% year-over-year in July 2025, reaching $6.79 billion, indicating potential support for the stock amid investor fatigue with Big Tech.  
- Goldman Sachs projects a 12-month price target of $266 for Apple, suggesting a 30% upside, supported by historical trends indicating August is typically a strong month for the stock.  

Apple's App Store Booms, But The Stock Lags: Is It Time To Buy?