Stock of the week: Apple up 2%, survives tough week in the market
Apple stock has finally caught a break to push higher, breaching key resistance levels in the process.
Despite Appl’s record performance its stock has not seen similar spikes in recent months. In the week of June 14 – 18 however, the tech titan finally caught a break to push higher, breaching key resistance levels in the process.
In this article we take look at Apple, whether you should invest in the company and looming red flags.
Good week for Apple
The week started badly with the US Federal Reverse trying to convince the market that it will get a handle on the country’s inflation woes. Many markets saw minor losses though AAPL saw a surge and the Nasdaq set a record high on June 17.
The stock has easily outperformed the S&P 500 since the Fed’s meeting on June 16 sent shockwaves through the economy.
3 key facts to know about Apple:
- 1.AAPL has beenrelatively flat for the year since a 12% drop in March 2021.
- 2. Despite the recent spike, AAPL is down 8% from its January peak of $143.
- 3.At$2.2 trillion, Apple is currently the most valuable stock in the world.
Apple dominates the mobile phone market, already selling 58-million iPhones so far in 2021.
Apple stock: June 14 – 19
Apple stock: YTD
Company outlook
Apple’s stock has rallied an incredible 449% in the last five years, outperforming the 102% increase in the S&P 500 over the same period. The company has also diversified its revenue stream which includes Mac sales and its Apple services.
A big test for apple will be how well it can grow its subscription base and new offerings which includes Apple TV+, Apple Arcade, Apple News+ and Apple car.
Apple statistics:
- Apple generated $274 billion in revenue in 2020, 50% of which came from iPhone sales.
- Apple sold 194 million iPhones, 71 million iPads and 20 million Mac and MacBook units in 2020
- Apple’s home and wearables division grew 25% in 2020. It sold over 110 million AirPods and 43 million Apple Watches
- Apple Music has 72 million subscribers, Apple TV+ has over 40 million
Red Flag – Looming anti-trust laws
The US is set to vote on a huge antitrust overhaul package targeting “Big Tech”. If enacted it will have far-reaching consequences for some of America’s biggest and most successful companies.
There are five bills, due for a committee vote on June 23, and they could pave the way for a breakup of tech giants such as Apple and reduce the monopoly major companies have on the tech sector.
The looming bills will have major effects on the entire tech sector as well as the global economy.
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