Apple may have suffered a few bruising months, but it seems that investors aren’t ready to lose faith in the Cupertino giant.
Despite Apple announcing disappointing holiday earnings, shares in the company rebounded today. Having performed strongly in pre-market trading, they are currently valued at — time of writing –$161.44. That’s the highest AAPL has been since the middle of December.
The main reasons for optimism seem to be that Apple, having experienced a booming rise for the past few years, now looks dangerously close to undervalued. With its install base of 900 million iPhones, and a growing Services division, which scored higher gross margins (62.8 percent) than expected, Apple is far from down and out.
Overall, shares in the company have dipped 27 percent in the past three months. That’s especially poor compared to just a 1.2 percent fall in the Dow Jones Industrial Average during that time. It would be a mistake to say that Apple is out of the woods now, but it seems that investors are ready to give it a chance to prove itself again.
Currently, Apple’s overall market cap is $760 billion. That’s just above Google’s $750 billion valuation, but below Microsoft $804 billion and Amazon’s $800 billion. It’s certainly a big fall from last summer when Apple became the first public company to gain a market cap of $1 trillion. But, hey, the company’s been known to do some of its best work when it’s an underdog!