Evercore’s Daryanani Notes Slowdown for App Store Revenue in May

03 JUNE 2022 - Evercore analyst Amit Darynani doesn’t seem worried about growth in the App Store, but he is taking notice. Seeking Alpha outlines part of a note he wrote, wherein the analyst points to “muted” revenue growth for the App Store, and a perceived need for “new drivers” to juice growth for Apple services.

By his firm’s reckoning, revenue for the App Store grew 4% last month. That was down from revenue growth of 9% seen by the App Store in April. Quoting his note:

We had expected growth to accelerate as comps became easier, so the slowdown is somewhat surprising, especially as China saw a large deceleration when we were anticipating some uplift from the ongoing lockdowns…

That said, the piece has Darynani highlighting other areas that could pick up some of the Services slack, “including advertising, and subscriptions.” I say he doesn’t seem worried based on his stance on the stock. He’s got an “Outperform” rating on Apple shares and a price target of $210.