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
Unstoppable momentum
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.
Red Flags
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.
Discover more opportunities with CMTrading
CMTrading offers more than 150 tradable assets including the top-performing stocks available in the markets. CMTrading clients get access to global brands, exceptional trading conditions and robust safety and security under the auspices of the Financial Sector Conduct Authority (FSCA) in South Africa.
Being a retail brokerage that specializes in CFDs (Contracts for Difference), CMTrading provides clients with unique advantages such as powerful leverage, which allows traders with smaller accounts to gain exposure to much larger positions. This translates to substantially higher profit potential; however, it should be noted that leverage also increases your exposure to downside risk.
While leverage typically adds a certain degree of risk to any investment, CMTrading also offers negative balance protection, thereby guaranteeing that potential losses will never exceed your invested capital.
If you are interested in learning more about how you can take advantage of price movements in stocks, currency exchange rates, commodities or cryptocurrencies, you will find that CMTrading’s unique offering of innovative services and diverse account types are suitable for both beginner and experienced traders.
Start trading the financial markets today with an award-winning broker.
