Apple stock could reach crazy highs after pandemic recovery

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Time to invest in Apple?
Photo: Rupixen/Unsplash

Apple stock has already recovered to its pre-coronavirus lockdown levels, but according to two investment firms much larger gains are on the horizon.

Speaking with CNBC, Todd Gordon, managing director at Ascent Wealth Partners, argued that Apple could be set to rally an additional 40% from its current share price. That would take Apple to $490 — or $135 above its $355 all-time high.

“If you look at the three advances since 2013, each has been at least 130% followed by a one-third giveback,” Gordon told CNBC‘s “Trading Nation” show Tuesday. “The current advance is only 66%, so we can easily — if history is to repeat — see another 70% in years to come, putting us at $490 potentially.”

There are plenty of reasons to be excited about Apple

Gordon’s not just betting on history repeating itself for… reasons, however. He argues that the combination of an impending 5G iPhone, more growth in the AirPods and Apple Watch category, and Apple’s booming subscription services are all reasons to get excited. “We think those will be the drivers of growth going forward,” he said.

Gordon’s enthusiasm is backed up by Steve Chiavarone, portfolio manager at Federated Hermes. Chiavarone said that the lockdown has reminded many people of why tech matters. “Consumers have pent-up demand,” he told CNBC. “They have stockpiled savings, and we expect the consumer to have a good second half [of 2020].” That ought to bode well for the likes of Apple, too.

At present, Apple is trading at $352.08. Whether Apple is able to get close to the predicted $490 remains to be seen, of course. However, if it does that puts it within striking distance of the $2 trillion valuation some have predicted for it by 2024.

Are you optimistic about Apple’s immediate future? Let us know your thoughts in the comments below.