AAPL shares have risen to a new all-time high in the aftermath of Monday’s WWDC keynote event. In early trading Tuesday, they hit $358.87 — up from the $351.50 they started the week at, and way up from the $224.37 low point they hit in mid-March.
Guess we should have all invested when we had the chance!
On Monday, Apple closed the day with a 2.6% gain for another record close. CNBC notes that this helped to “power Wall Street’s rally” as the Dow Jones, S&P 500 and Nasdaq all closed up.
As TechCrunch points out, Apple keynotes don’t tend to have a big impact on Apple’s stock price. That’s because, unlike earnings, Apple’s announcement of future products still leaves room for uncertainty: It’s not yet clear what, for instance, iOS 14 or macOS 11 will mean for business.
Instead, Apple’s increased share price represents a long-term faith in Apple’s stock. Speaking with CNBC, William Power, senior analyst at investment bank Robert W. Baird, said there is a “drumbeat of continuous innovation” at Apple.
The firm has a current price target of $390 on Apple, with Power saying that now is the time customers want to get hold of Apple stock as it heads into the next product cycle. New 5G iPhones, a redesigned iMac and more are all expected for later this year.
There may be other things working in Apple’s favor, too. In particular, news that the U.S. and China trade deal is “intact” is great news for Apple. While the company has made efforts to expand its manufacturing base outside China, the overwhelming majority of its products are still made there. Apple CEO Tim Cook previously pegged China as the company’s future biggest market.
Will Apple hit $2 trillion?
Evercore ISI analyst Amit Daryanani recently argued that Apple could have the makings of a $2 trillion company. At present, Apple’s market cap is $1.57 trillion. By comparison, Microsoft is worth $1.53 trillion. Amazon is worth $1.36 trillion. Google parent company Alphabet is worth $990 billion. And Facebook is worth $691.4 billion.
Are you optimistic about Apple’s long term future? What are your predictions for the rest of 2020? Let us know in the comments below.