Apple shares increased 2% on Monday, buoyed by the news that the burgeoning trade war between China and the U.S. could be over.
In all, AAPL is up almost 30% for the year. But according to an equity strategist, what happens next could be crucially important. It’s either very good news for Apple, or very bad.
With the exception of Tim Cook, Jony Ive is almost certainly the most famous person associated with the modern era of Apple.
As the iconic Brit designer known to millions for waxing lyrical in front of a white backdrop on Apple keynotes (and, you know, designing a whole bunch of insanely great products), he’s an Apple icon.
So what kind of impact did his newly announced departure have on Apple’s stock price? Maybe not as much as you might think.
Apple shares are having a rough time right now — but, don’t fear, investors simply think this is a great opportunity to invest.
Shares in AAPL are currently trading at $177.39. That’s down from a high of $211.75 at the start of May. It’s also way down from Apple’s all-time high of $233.47 in October. Unless things turn around in the next couple of days, that will mean Apple posting its worst month of 2019.
Apple comes in third on this year’s Fortune 500 list, a ranking of companies based on revenue.
Apple lagged behind Walmart and ExxonMobil in terms of revenue. However, it massively outperforms both in terms of profitability. Interestingly, No. 4 on the list — Warren Buffett’s Berkshire Hathaway firm — is also one of Apple’s biggest investors.
Concerns about the U.S.’s trading relationship with China is hitting Apple shares.
AAPL’s share price has been steadily sliding since President Donald Trump took to Twitter to talk trading tariffs. It’s currently trading at $189.15, down from its high of $211.75 earlier this month.
After slowing down on buying back shares in Q4 when they were cheap, Apple is once again ramping up its share repurchases.
In the first three months of 2019, Apple spent a massive $24 billion buying back its own shares. The board of directors has also added a further $75 billion to Apple’s share repurchase authorization.
After crashing late last year, Apple stock has had a massive resurgence this year. Its next milestone to hit? Being on track to flash a so-called “golden cross” technical pattern.
This indicates the potential for a major rally. It takes place when a stock’s short-term moving average crosses above its long-term moving average. Golden crosses have recently appeared for Facebook, Amazon, Netflix, and Google parent company Alphabet.
Mega-investor Warren Buffett says that Apple’s most recent earnings confirm “the reason [my firms owns] $50 billion-plus of Apple.”
Speaking on CNBC, the Berkshire Hathaway investor said that, “I was pleased with what they reported.”
Yesterday, numerous news outlets (including ourselves, based on data from Yahoo Finance) reported that Apple had reclaimed its $1 trillion crown.
However, a filing made late Wednesday reveals that Apple has not actually hit that milestone just yet. A company’s market cap is calculated by multiplying a company’s outstanding shares by the market price of one share. As a result of Apple’s continuing share buyback program, there are fewer outstanding shares available.
Apple has won back its hard-fought $1 trillion market cap, after share prices rose following yesterday’s earnings triumph.
AAPL is currently trading at $213.20, giving it a market cap of just over $1 trillion. Shares rose 6% in early morning trading. This is a particularly triumphant moment for Apple after its stock price temporarily tanked at the end of last year.
