The stock of the week: Apple on fire, stock hits all-time high
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.
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.
AAPL is up 17% since June 2021. Its incredible stock market gains come ahead of its Q3 earnings results, which will be reported on July 27.
In this article, we look at Apple and its performance so far this year
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.
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%.
More products, record profits
Apple has unveiled several new products during the quarter, including the AirTag and new models of the iPad Pro, iMac, and Apple TV in April.
Apple’s market cap could soon reach a staggering $2.5 trillion, making it the world’s most valuable tech company.
Analysts believe Apple could set a new Q3 revenue record of $72.9 billion, up 22% from $59.7 billion.
Targeting growth in India
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.
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.
Apple’s success is hindered by 3 important external factors – global economic recovery, maintaining supply and the extent of the COVID19 virus.
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.
While many countries have rolled out vaccines and opened their economies, overall, the world remains in the grip of the 3rd wave of the pandemic. A spike in cases, particularly in the US and Europe, will harm Apple’s sales.
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