Apple’s second quarter earnings are going to be down from the same quarter last year. But despite Apple continuing to bear the brunt of negative headlines, its stock price just keeps going up.
A new article from CNBC notes that Apple shares are up 43% since January. That’s pretty darn impressive for a company whose biggest product, the iPhone, may have seen the end of its major growth.
The report is interesting because it runs down just what a mixed year Apple has had. There are the usual concerns about slowing iPhone growth. But there’s also Apple’s underwhelming “Show time” event and cancelling the AirPower device. Most recently, Apple settled with Qualcomm, which involved paying up billions of dollars.
CNBC writes that:
“Apple’s rising stock suggests that the market is finally digesting what the company has been broadcasting for years: Apple is changing its story — it’s not the iPhone company anymore, even though that single product accounts for over 60% of Apple’s sales. Instead, Apple sells a slew of online services with recurring billing, so Apple deserves to be priced more like Amazon, Google, or Facebook.”
It would be foolish to think that Apple is immune to these negative stories, of course. Last year, the stock tanked after Tim Cook revealed slowing iPhone sales. But it then proceeded to bounce back, despite the fact that Apple hasn’t really done all that much. Sure, it’s cut iPhone prices in China and announced a few upcoming Services.
Long-term belief in Apple
However, considering the oftentimes harsh press that Apple gets (compare it with how Samsung’s Galaxy Fold problems have largely slipped under the radar), it shows that investors really do have faith in the company long-term.
At present, Apple is sitting at a market cap of $963.332 billion. Its current share price is $204.30. When Apple became the first $1 trillion company last summer, its shares had to pass $207.05 to hit that point.