Apple’s stock price rises over 80% this year: the worst performance in ten years at the beginning of the year

Technology News on December 27, according to foreign media reports, on Thursday, local time in the United States, Apple’s stock price rose again, setting a new high record, the iPhone maker is expected to achieve the best annual performance in 10 years.

On the first trading day after the Christmas break, Apple shares rose 1.6%. A survey by market research firm Evercore ISI shows that, thanks to strong early consumption data during the holiday shopping season, Apple products (especially AirPods and iPhones) have been listed as “necessities” on the wish list by a large number of customers, bringing positive results keynote.

As of Thursday, Apple had closed only five times in 18 trading days this month. In December this year, Apple’s stock price rose by more than 7% from the previous month, and it is expected to usher in the 10th rising month of 2019.

As the largest listed company in the United States, this rally has prompted the stock to rise more than 80% this year, increasing its market value by about $ 530 billion. This increase exceeded the market capitalization of all companies in the S & P 500 except five companies, which is twice the Intel market value.

About 10 years ago, as the stock market began to recover from the financial crisis, Apple’s stock price for the whole of 2009 soared by nearly 150%. The company’s gains in 2019 easily exceeded the S & P 500’s nearly 30% gain and also exceeded the gains of other large stocks. Microsoft has gained more than 55% this year, and Amazon has gained about 23%, less than a third of Apple’s gain.

Apple’s stock price has been extremely volatile this year. On January 2, Apple released clear negative news, reducing its revenue forecast for the first time in nearly 20 years. The news triggered a large-scale sell-off, but the stock price quickly rebounded and continued to rise throughout the year. There are signs that trade tensions are easing, which provides a stable macroeconomic impetus for the stock market.

Cowen analyst Krish Sankar said in a December 17 report that Apple “has issued a surprisingly negative notice at the beginning of this year, and subsequently due to slowing iPhone sales and a lack of A clear 5G strategy and trade tensions exacerbated bearish sentiment on the stock in the first half. But in the second half, this sentiment became positive. ”

Sankar attributed the shift in market sentiment to the growth of Apple’s services business, which has always been the focus of analyst attention, launching streaming video products and subscription-based video game services. More importantly, Wall Street expects Apple to launch a 5G iPhone in 2020 and remains optimistic about its potential.

A number of companies have recently raised Apple’s target share price, and Apple’s next-generation products are widely considered to be one of the most important drivers.

In addition to Cowan raising Apple’s target from $ 290 to $ 325 earlier this month, Piper Jaffray also raised its target by $ 15 last week. In addition, Wade Bush raised Apple’s target price to $ 350. It is expected that the next-generation iPhone will have greater improvements in speed and functionality than the iPhone 11, and the iPhone 11 will perform better than many expected. In 2019, iPhone sales account for about 55% of Apple’s total revenue.

The average target price of Apple stock is about $ 268, which means that it is about 7% below the current trading level. Still, Wall Street is generally bullish on Apple stock, with 28 companies suggesting investors “buy” the stock. In contrast, 14 companies are rated “Neutral” and only 7 companies are “Sell”.

The upcoming test of Apple’s stock price will come in late January, when it is expected to announce its first fiscal quarter of fiscal year 2020. Analysts expect profit growth of more than 8% and revenue growth of 4.5%. Bloomberg MODL estimates that iPhone sales in the quarter are expected to be approximately 66.7 million units, an increase of approximately 0.8% year-on-year. The average selling price of an Apple phone is expected to be $ 781.35, a 4.1% decrease from the same period last year.

Leave a Reply

Your email address will not be published. Required fields are marked *