KeyBank card purchases of Apple stuff fell 8% in May

From Erik Volkman's "Why the Shine Was Off Apple Stock Today" posted Thursday on the Motley Fool:

In a new note to clients, Brandon Nispel, an analyst at KeyCorp's (KEY -3.47%) KeyBanc, revealed that payment card data from customers of the bank showed that spending on Apple products declined notably in May. On a month-over-month basis, this fall was 8%, quite a contrast to the three-year monthly average increase of 6%.

Nispel added that the drop was the weakest May showing, even taking into account the pre-pandemic era. In Nispel's estimation, this indicates weakening demand for Apple goods throughout the U.S.

In spite of this recent data, based on his estimates portending continued growth, the prognosticator is maintaining his overweight (buy) recommendation on Apple stock. Nispel is also keeping his $191 per share price target.

My take: Volkman may be right about why Apple got clobbered yesterday, but the 8% falloff in purchases says more about the state of the economy than it says about Apple.

2 Comments

  1. David Emery said:
    It also doesn’t consider if a lot of Key Bank cardholders moved their Apple purchases to an Apple credit card.

    7
    June 10, 2022
  2. Michael Goldfeder said:
    As David said, credit card usage with a single brand card is hardly the metric to make this conclusion by KeyBank. I utilize credit cards to maximize bonus benefits such as flight miles and statement credits amongst many card brands. My hunch is many people do the same.

    Furthermore, I’ve never heard of KeyBank so that tells me all I need to know about their card, organization, and analyst.

    0
    June 10, 2022

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