On the US stock market on Monday, Apple’s stock price rose 1.7% to 240.51 points, creating a new record for historical closing prices.
Editor’s note: This article is from “Tencent Technology”, review/contract Hey, authorized to reprint.
According to foreign media reports, Apple Inc. (AAPL) plans to announce its third natural quarter financial results on October 30. Before the earnings report, analysts released a very positive research report on Apple and raised the target. share price. Driven by the positives, Apple’s share price soared to an all-time high on Monday.
According to foreign media reports, on the US stock market on Monday, Apple stock prices rose 1.7% to 240.51 points, creating a new record for historical closing prices. In Monday’s intraday trading, Apple’s stock hit a “higher” record of 240.99.
Apple recently surpassed Microsoft (MSFT) to become the world’s most valuable company. According to Monday’s closing price, Apple’s current market value is close to $1.09 trillion. In contrast, Microsoft’s market value is $1.06 trillion. More than $30 billion.
Recently, Chris Caso, an analyst at Raymond James, a US financial company, reiterated his outperform rating on Apple stock and raised his target price from $250 to $280. Dollar.
This analyst said in a report that Apple’s new iPhone 11 smartphone sales this year are better than expected, and that early next year, Apple is expected to launch a low-cost smartphone – the rumored IPhone SE 2 – This creates “more stable near-term conditions” for Apple stocks.
In the long run, the analyst has high hopes for Apple’s 5G smartphones to be launched next year.
He said: “We are increasingly considering 5G opportunities as Apple’s two-year product cycle. 5G smartphones account for about 40% of the portfolio in the fall of 2020, and grow to the greatest extent in the 2021 product cycle. Most.”
Can you break through $250
Apple’s share price underperformed last year, and after falling more than 30% in the last quarter of 2018, Apple’s share price regained its vitality in 2019. The stock has risen 50% so far this year.
The stock has returned to a market value of one trillion dollars. Now, investors will focus on the company’s third-quarter earnings and its forecast for 2020 fiscal year results.
In October 2018, Apple CEO Tim Cook announced that the company would stop reporting equipment shipments. He said that the data is irrelevant. Investors have notAccepting Cook’s argument, they are worried that the shipments of Apple’s mobile phones will drop significantly in the future.
Apple phones are the company’s flagship product. It is worth noting that Apple’s mobile phone accounts for nearly 50% of the company’s total sales. The quarterly decline in Apple’s mobile phone will cause Apple’s stock to fall sharply. In June, Apple’s Apple’s mobile phone division reported second-quarter sales of $26 billion, lower than analysts’ estimates of $26.31 billion.
Overall, Apple’s mobile phone sales in the second quarter fell 13% year-on-year. However, since Apple introduced the new iPhone 11 series, analysts have been optimistic about supply chain demand. The company also lowered the starting price of new equipment to boost sales in emerging economies in India and Southeast Asia. Recently, the media reported good news about the actual sales of the iPhone 11.
Although smartphone sales are still critical, Apple’s service division will be the key to revenue growth. The market segment consists of several membership businesses, including Apple Music.
With the growth of mobile games and online streaming services, Apple’s app store continues to generate significant sales. According to foreign media reports, Apple Store’s revenue in 2018 is estimated at $46 billion.
Although Apple’s share of total smartphone sales worldwide is less than 15%, Apple Store’s revenue has easily surpassed Google Store. According to data from technology market research firms, in the first half of 2019, Apple and Google’s app stores and game stores generated $39.7 billion in revenue. Among them, Apple Software Store led the application sales, which reached 25.5 billion US dollars in the first two quarters of 2019, an increase of 13.2%.
As the income base continues to diversify, the company has the ability to launch cheaper equipment. The service business is a high-profit area. The business will drive the company’s earnings in the coming quarters.
Investors and analysts are also optimistic about the latest services from Apple Game Content members and Apple Video Services. Bundling Apple videos with his devices may increase the number of members.
According to foreign media reports, the average target price of a number of Wall Street analysts on Apple stocks is estimated at $230.2, lower than the current transaction price. However, we can expect several analysts to modify the target price based on the company’s 2020 Apple performance forecast.
According to the usual practice, the third and fourth quarters of each year are the best quarters of Apple’s performance (the sales volume gradually increases after the release of the new mobile phone, and the peak in the fourth quarter of Christmas). This year, the iPhone 11 sales have been boosted. Apple’s supply chain business performance, after the release of earnings, Apple’s stock price can continue to climb, breaking through the $250 mark, it is worthy of attention.