Is Apple Unstoppable?
When a stock starts to perform well, traders start asking themselves the same questions: ‘Why is it appreciating in value?’, ‘Is it stable?’ and most importantly ‘Is it too late to buy?’ As part of this article, we will provide you with as much information in order for you to decide based on a rigorous analysis.
Why is everyone talking about Apple Stocks?
Firstly, the stock is one of the few in the market which has managed to not only recover after the stock market crash of Feb 2020, but has actually confidently reached an all-time price high. If we look at the asset’s price prior to the current crisis, at its quotations from back in December-January we can see the stock reached an all-time high of $328 per stock. The stock has currently reached a new high of $372 which is an increase of over 10%.
If we go back even further and compare the stock over the last 12 months we can again see the success of the stock. 12 months ago the stock was priced at $198 and if the trend continues, the stock will move towards a price of $400, which is double in only 12 months.
However, traders who are investing in CFDs are not able to open and hold positions such as the stock market so easily, as they may incur unattractive overnight fees. Therefore as traders, we are looking for the optimal moment to enter.
In addition to the risk of volatility and leverage, traders also need to take into consideration whether the movement has ended or if there is more ground to make up before momentum is lost. If traders are looking for a technical strategy to assist them with the timing of their entrance and exit they can refer to our recorded webinars on our YouTube page.
The New iPhone
Apple usually releases its latest iPhones in September, but uncertainties surrounding the coronavirus crisis are likely to delay the release. Analysts now expect Apple to debut its iPhone 12 series in October, in time for the holiday shopping season. The new product is likely to have both 4G and 5G handsets.
On April 15th, Apple introduced a lower-cost smartphone aimed at budget-conscious consumers and emerging markets. The second-generation iPhone SE starts at $399 according to reports. This move has been massively complimented, and supported the stocks growth.
Expanding Market and increase in Revenues
In the March quarter, Apple’s services revenue rose nearly 17% to $13.35 billion. Services include App Store, AppleCare, iCloud, Apple Pay, Apple Music, Apple TV+, Apple Arcade and other offerings.
On April 21st, Apple launched a major international expansion of its service offerings. It brought the App Store, Apple Arcade, Apple Podcasts and iCloud to 20 more countries and Apple Music to 52 additional countries.
Meanwhile, Apple’s Wearables, Home and Accessories unit saw sales jump 22.5% to $6.28 billion in the March quarter. This unit includes wearables like the Apple Watch, AirPods wireless earbuds and Beats headphones. It also includes the Apple HomePod wireless speaker and other gadgets.
Apple’s Current figures
Apple earned $2.55 a share on sales of $58.31 billion in its fiscal second quarter, back in March. The market was looking for earnings of $2.26 a share on sales of $54.54 billion. On a year-over-year basis, Apple earnings rose 4% while sales increased 1% higher.
In March, iPhone sales fell by 6.7% to $28.96 billion. Mac computer sales dropped by 2.9% to $5.35 billion. And iPad tablet sales slid a massive 10.3% to $4.37 billion. Growth in services and wearables helped offset those declines.
However, even with sales in the above, decreasing the market has gained confidence with the plan to release a more affordable product to attract a wider audience.
Apple did not issue guidance for the current quarter, citing market uncertainties related to the coronavirus pandemic. Wall Street had been predicting Apple earnings of $2.07 a share on sales of $51.54 billion for the June quarter. In the year-earlier quarter, Apple earnings were $2.18 a share on sales of $53.81 billion.
Overall after reading this blog and doing your own research it will be clear for you to see that the achievement of Apple as a brand, company and most importantly the stock is something which cannot be denied. The stock’s appeal has increased massively since the stock market crash as the stock reaches a new all-time price high. However, traders should ensure they have a trading plan which takes into account risk management.