The stock of the week: Apple on fire, stock hits all-time highย ย
Apple investors are smiling at the bank as the tech giant hit an all-time high of $145. Incredibly, APPL is up 17% since the start of June.ย ย
Apple (AAPL) is one of the best performers in the stock market this year; the tech giant hit an all-time high of $145 in early July.ย ย
AAPL is up 17% since June 2021.ย Itsย incredible stock market gains come ahead of its Q3 earnings results, which will be reported on July 27.ย ย
In this article, we look at Apple and its performance so far this yearย ย
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Unstoppable momentumย ย
Apple stock trailed the market in the first half of 2021 with a gain of 3.2% while the S&P 500 index rose 14.4%. In July however, shares have added 6.0%, compared with the 1.7% gain in the index.ย ย
Shares of Apple climbed for the seventh trading day in a row, marking its longest upward streak in about three months. Shares are up 8.6% over the past seven sessions. Apple shares have gained 9.0% so far this year as though the Dow Jones Industrial Average has risen 13.3%.ย ย
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More products, record profitsย ย
Apple has unveiled several new products during the quarter, including theย AirTagย and new models of the iPad Pro, iMac, and Apple TV in April.ย ย
Apple’s market cap could soon reach a staggering $2.5 trillion, making it the world’s most valuable tech company.ย ย ย
Analysts believe Apple could set a new Q3 revenue record of $72.9 billion, up 22% from $59.7 billion.ย ย
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Targeting growth in Indiaย ย
With a population of nearly 1.34 billion, India presents an attractive proposition for any tech company. Apple has been trying to crack the Indian market for a long time now with mixed results. In 2020, Apple only held 4% of India’s smartphone market. Since then, however, Apple’s iPhone sales in India are booming, with a 207% jump in shipments in Q1.ย ย ย ย
India’s massive population presents a huge revenue opportunity for Apple across various device categories. The tech giant has already taken steps to take advantage of it.ย ย
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Red Flagsย ย ย
Apple’s successย is hindered byย 3 important external factors – global economic recovery, maintaining supply and the extent of the COVID19 virus.ย ย
Apple’s CFO Luca Maestri has cautioned that supply constraints could affect his company’s revenue. The entire tech industry is affected by a global chip shortage.ย ย ย
While many countries have rolled out vaccines and opened their economies,ย overall,ย the worldย remainsย in the grip of the 3rd wave ofย theย pandemic. A spike in cases, particularly in the US and Europe, will harm Apple’s sales.ย ย
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