Apple (NASDAQ:AAPL)

Shares of the top technology giants Apple (NASDAQ:AAPL) and Meta Platforms (NASDAQ:META) are among the most widely discussed stocks on the social media platform Reddit. While these shares are buzzing on Reddit and have significantly gained mentions, they have outperformed the S&P 500 Index (SPX) and have appreciated considerably on a year-to-date basis. Despite the rally in their prices, analysts’ average price targets suggest a decent upside in these stocks.With this background, let’s delve into these trending Reddit stocks.

Can Apple’s Stock Go Higher?

Apple stock has gained over 37% year-to-date. However, its stock came under pressure recently due to concerns over iPhone sales in China. Nonetheless, Morgan Stanley analyst Erik Woodring reiterated a Buy on Apple stock on September 7 and doesn’t expect the issues to snowball. Further, Woodring added that Apple is performing well in the Chinese market.

On the other hand, Apple will introduce its iPhone 15 and a new version of the Apple Watch on September 12. Commenting on the launch, Goldman Sachs analyst Mike Ng said he expects the iPhone 15 to lead to an improved price/mix. He maintained a Buy on AAPL stock on August 31 and expects the company to benefit from a large installed base and lower churn.

Overall, Apple is expected to benefit from a growing installed base of paid subscriptions and strength in the Services segment. However, near-term macro uncertainty is keeping analysts a bit cautious.

Apple stock has received 22 Buy and eight Hold recommendations for a Strong Buy consensus rating. Analysts’ average price target of $207.03 implies that it can go 16.6% higher from current levels.

What is the Price Target for Meta?

Meta stock has gained over 148% year-to-date. Despite the surge in price, analysts’ average 12-month price target of $376.19 suggests a further upside potential of 25.96% from current levels.

The improving advertising market, the company’s focus on driving user engagement, deep cost-cutting measures, and investments in AI (artificial intelligence) provide a solid foundation for future revenue and earnings growth.

Citing the reacceleration in ad growth, Morgan Stanley analyst Brian Nowak reiterated a Buy on Meta stock on September 6. Including Nowak, Meta stock has received 41 Buy recommendations. At the same time, two analysts have rated Meta stock a Hold. Overall, Meta has a Strong Buy consensus rating.

The Bottom Line

Apple and Meta stocks are trending on Reddit and have good long-term growth prospects. Further, analysts’ price target indicates further upside in both of these stocks. However, Meta, with higher upside potential from current levels (based on analysts’ price target) and a Strong Buy consensus rating, looks more compelling than Apple in the short term.

 

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