Apple is within 3% of hitting a record-high market cap, with a current valuation of $1.037 trillion. And it might be about to climb even higher.
“Longer term, this is one of the best stocks out there,” MKM Partners chief market technician JC O’Hara told CNBC. However, in the short term, O’Hara thinks Apple faces a few challenges.
AAPL rose 1% early Wednesday after a report stating that it’s likely to introduce new hardware early in 2020. According to TF International Securities analyst Ming-Chi Kuo, Apple could ship its first AR glasses during the second quarter of 2020. Apple also seems poised to introduce a new iPad Pro, iPhone SE 2 and a new 16-inch MacBook Pro. APPL stock currently trades at $229.49.
MKM Partners’ O’Hara did issue a warning about people investing in Apple hoping for a quick buck. “Short term, Apple is slightly overbought and it’s overbought as it’s approaching the 2018 highs at $230,” he said.
“That’s going to be an area of resistance. So we have an overbought stock at resistance, and that’s not the best recipe for a stock that’s ready to break out. So tactically, I would love to see the stock pull back a little bit. I think $215 is a great area. That’s where the rising 50-day moving average is. That’s where horizontal chart support is. I think that is the area where it will make sense to buy a position or to add to an existing position because at that level, I think Apple will be in a much better technical shape to break out and to make all-time highs.”
Apple’s high valuation
Apple first crossed the $1 trillion milestone last year, before dropping back to the $900 billion mark. It recently crossed the $1 trillion mark again, and has stayed there since. That seems particularly impressive, considering that many people predicted this year’s iPhone refresh would prove boring. Add in continued challenges in China, and Apple’s doing amazingly well, considering.
It’s worth noting that, although Apple could hit its highest-ever valuation, the stock has been a lot higher in the past. The highest valuation for a single AAPL share was $705, which Apple hit in September 2012. However, Apple’s stock split 7-to-1 in 2014.