Apple stock hit an all-time high of $636.64 per share on Thursday, and today that price continues to rise. The last time Apple jumped above $630 a share was back in April, right before its share price began a six-week decline that knocked $115 off the price — and $100 billion off Apple’s market cap — when it ended on May 18.
It’s unlikely we’ll see a repeat of that now, however. According to one analyst, investors are so keen to plough their money into Apple before the iPhone 5 sends share prices rocketing that there’s no sign of those prices dropping anytime soon.
Andy Zaky of Bullish Cross highlights the situation Apple was in on July 25, the day after the company reported earnings that were below Wall Street’s expectations, when its share price remained steady at $570:
“The stock tested and held the $570 level on three separate trading sessions last week after Apple missed earnings,” he wrote the next weekend. “The market completely failed to take Apple below that key support level. What’s more, the stock only closed down $15.00 from its pre-earnings price. That suggests that the bears have generally failed to take over on the momentum.
“Imagine if Apple reported a beat on earnings, gapped-up and spent three sessions attempting to take out the $620 level but failing. You would [have viewed] that as very bearish.
“The problem is this. Apple freaking missed on earnings! Missed. If a miss can’t get the ball in the bears court, then what can? That sort of mentality is what could lead to a potential parabolic move in the stock. You could see a fear driven rally which generates major momentum which could in turn lead to a parabolic move. So just keep that in mind. The risk is there.”
Back in July, when Zaky and the rest of us thought the iPhone 5 would arrive in October, he predicted Apple stock would be trading between $700 and $750 per share before the end of the year.
Now that the device is expected in September, Zaky believes it will hit that price a lot earlier than expected. His biggest fear, Fortune notes, is that he won’t get chance to put all of his money into Apple before the share price skyrockets.
Apparently the rest of Wall Street has the same fear, and that’s why Apple’s stock is expected to go up and up and up from now on.