Morgan Stanley analyst Katy Huberty says Apple’s (NASDAQ:AAPL) +0.3% App Store revenue is ahead of expectations after strong revenue growth acceleration in August.
Sensor Tower data shows App Store revenue up 25.8% last month, the strongest Y/Y growth since February 2018.
So far this quarter, App Store net revenue is $2.9B, +22.4% Y/Y and above Morgan’s +18% forecast for the September quarter.
Due to China’s gaming license issues at the end of last year, comps should ease heading into the Q4 report on October 31.
Huberty maintains an Overweight rating and a $247 price target on Apple. The company has an Outperform average Sell Side rating.