Deepwater Asset Management managing partner Gene Munster called personalized AI agents the biggest risk to Apple's integrated hardware and services ecosystem. Munster expressed disappointment on X with CEO John Ternus' answers to two personalized-agent questions during Apple's earnings call. Munster wanted an explanation of Apple's positioning as agents change consumer technology, rather than a discussion limited to Siri improvements. Munster wrote, "It's clear they don't want to talk about personalized agents."
Munster estimated that around 20 million people currently use personalized agents, including Meta Platforms' Muse and Space Exploration Technologies' Grok Bot. Munster predicted that daily usage could eventually reach billions of people. Asked about the potential effect on Apple's Services business, Ternus pointed to opportunities to broaden AI-powered Siri's capabilities while preserving privacy and security. In response to the second question, Ternus presented the iPhone as a personal hub and emphasized Siri's secure access to user information.
Munster assessed Apple's overall business as solid despite increasing memory costs and higher prices for consumers. Munster put gross margin excluding a tariff refund at 46.9%, below Wall Street's 47.5% expectation. Munster argued that the price increase was insufficient to offset memory costs.
Porter & Company analyst Ross Hendricks argued that Apple's quarterly share repurchases of $24 billion look less substantial relative to a market capitalization of roughly $5 trillion. Hendricks calculated that annualizing the repurchases to $96 billion produces a shareholder yield of about 2%. Futurum Group CEO Daniel Newman wrote on X, "$AAPL capex will make investors happy. Who cares if it ever builds anything new."
Apple reported $114.48 billion in fiscal fourth-quarter revenue against Wall Street's $113.39 billion expectation. Apple earned $2.10 per share, exceeding analysts' forecast of $1.98. Apple projected revenue growth of 7% to 10% year over year for fiscal first-quarter 2027. The forecast could produce the highest quarterly revenue in Apple's history.
Benzinga Pro data showed Apple shares ending Monday at $338.32, a decline of 1.83%. Benzinga Pro data showed a further after-hours decline of 2.81% to $328.81. Benzinga Edge Rankings assigned Apple the 97th percentile for Quality and the 44th percentile for Growth.
Top Analyst Criticizes Apple's Lack of Clarity on Personalized AI Agents
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Summary
Top analyst Gene Munster criticized Apple for failing to discuss personalized AI agents during its earnings call, despite strong on-chain trading signals showing 20 million users already engage with such tools. Munster noted CEO John Ternus focused on Siri upgrades rather than Apple’s broader AI strategy. Ternus emphasized Siri’s secure features and the iPhone as a personal hub. Munster also pointed out Apple’s gross margin missed expectations, raising concerns about support and resistance levels in its financial performance.
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