The stock price of Apple Inc (NASDAQ: AAPL) increased 5.17% this week, going from $137.98 on Friday, July 2 at 9:30 AM ET to a close of $145.11 on July 9. There are a few catalysts driving the stock price up.
Investors have been buying shares in anticipation of Apple’s fiscal third-quarter earnings report scheduled for July 27. Apple had reported its revenue for the second quarter increased 54% year-over-year — which was well above analyst expectations.
Another catalyst driving the stock price up is the excitement around the iPhone 13. The iPhone 13 is expected to be released in September or October, but there have been a number of reports speculating what the new features could be. Some of the rumors so far include a better ultra-wide camera with autofocus and the ability to shoot portrait mode videos. Plus there are rumors that Apple will be making the notch on the iPhone 13 devices smaller and that there might be support for reverse wireless charging.
Investors have also been responding positively to a bullish research report. JPMorgan analyst Samik Chatterjee said earlier this week that now is the time to start buying Apple stock. Chatterjee noted that the expectations of the iPhone 13 have been too low. And Chatterjee increased the price target on Apple to $170 from $165 and kept an “Overweight” rating on the shares.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
It was also the best performer in the Dow Jones Industrial Average and the S&P 500’s most active name.
This as the S&P 500 and the Nasdaq Composite also nabbed fresh all-time highs with annual gains of 13.8% and 16% respectively, still ahead of Apple.
“The big money flows are heading right now into Amazon, Apple, Google, Facebook, Microsoft with a smattering of others and I think it continues at least into earnings which is about three weeks away,” said Gary Kaltbaum, Capital Management President. Apple is set to report earnings after the close of trading on July 27.
Despite its gains, Apple is still lagging its big-tech peers including Google with a 44% rise. Microsoft and Facebook are up over 25%+ apiece and Amazon has gained 13.5% recently hitting a fresh all-time high as CEO Andy Jassy took over from founder Jeff Bezos this week.
Amazon closed at its second fresh record high of the week on Wednesday.
Apple CEO Tim Cook, Bezos and Jassy are all expected to attend the Allen & Co. media and tech conference in Sun Valley Idaho this week also dubbed the summer camp for billionaires.
Shares of Apple Inc. are on track to post their first record close since January as the shares head for their seventh-straight trading day of gains.
is up 1.4% in midday trading Wednesday to a recent $143.98, putting it on pace to finish above its closing record of $143.16 set on Jan. 26. The stock needs to trade above $145.09 to surpass Apple’s intraday record from Jan. 25.
Shares of Apple are up for the seventh trading day in a row, which would mark their longest winning streak in about three months. Shares up more than 8% over the past seven sessions.
Several analysts have weighed on Apple’s prospects lately, including J.P. Morgan’s Samik Chatterjee, who wrote Tuesday that he sees “a very attractive set up for the shares in the second half of the year.”
Chatterjee expects that Apple will be able to surpass “relatively low investor expectations” with its iPhone 13 launch in the fall “with a multiyear 5G tailwind to the replacement rate and a larger installed base supporting stronger run-rate of annual volumes relative to current investor expectations.”
He has an overweight rating on the stock and raised his price target to $170 from $165.
Evercore ISI’s Amit Daryanani wrote over the weekend that Apple’s App Store growth reaccelerated in the month of June to about 23%, by his estimates, relative to 13% growth in May and 18% growth in April.
He said that consensus estimates for the App Store’s June-quarter revenue look a little too high given his estimations of the whole quarter’s performance and tough comparisons to the earlier days of the pandemic a year back, though he remains confident in Apple’s ability to grow the services business at a high-teens rate over the long term.
He has an outperform rating on the stock with a $175 price target.
Apple shares have gained 8.5% so far this year as the Dow Jones Industrial Average
has risen 13.1%.
Margrethe Vestager, the European Commission (EC) executive vice-president and competition commissioner, said on Friday (July 2) that Apple can’t use privacy and security concerns to stifle competitors on its App Store, Yahoo Finance reported.
Security and privacy issues were the central reasons that Apple CEO Tim Cook gave for stopping software installations outside the App Store.
The EC’s Digital Markets Act (DMA) could mandate that Apple make the App Store open so that users can download apps from the internet or third-party app stores — known as side-loading, according to the news outlet.
Cook said at a recent event that the proposal would effectively undermine the iPhone’s security and privacy, a notion that Vestager agrees with.
“I think privacy and security is of paramount importance to everyone,” Vestager said, per Reuters. “The important thing here is, of course, that it’s not a shield against competition because I think customers will not give up neither security nor privacy if they use another app store or if they sideload.”
Although Vestager said she welcomed changes, other EU countries and lawmakers would have to weigh in before anything becomes law.
“I think that it is possible to find solutions to this,” she told Reuters.
The antitrust head also said that Apple’s privacy changes, as opposed to Google’s plan to block cookies, are no longer in her crosshairs for now.
For his part, Cook took aim at the EU’s proposed regulations, saying the DMA could harm consumers by weakening the security of iOS devices.
Apple is facing new allegations from the German authority Bundeskartellamt, which is the fourth investigation by the authority of a large digital firm. Each case is the result of an amendment to the German Competition Act.
Both Apple and Amazon are looking at antitrust investigations in Spain by the antitrust watchdog CNMC.
Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Apple (AAPL – Free Report) , which belongs to the Zacks Computer – Mini computers industry.
This maker of iPhones, iPads and other products has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 29.57%.
For the most recent quarter, Apple was expected to post earnings of $1 per share, but it reported $1.40 per share instead, representing a surprise of 40%. For the previous quarter, the consensus estimate was $1.41 per share, while it actually produced $1.68 per share, a surprise of 19.15%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Apple lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Apple has an Earnings ESP of +0.60% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock’s Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company’s next earnings report is expected to be released on July 27, 2021.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it’s really important to check a company’s Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they’ve reported.
The stock price of Apple Inc (NASDAQ: AAPL) increased by 1.25% today. There is no company-specific news driving the stock price up.
As a whole, technology and growth stocks had extended their run. The Treasury yields also dipped across the curve and the 10-year yield fell below 1.5% as the concerns over elevated inflation and an interest rate hike retreated.
In an interview with Yahoo Finance, Chris Gaffney, TIAA Bank president of world markets said that there was some worry following the initiate June FOMC (Federal Open Market Committee) meeting that they were going to turn hawkish and maybe do a preemptive strike if needed. However, the commentary was walked back over the past few days.
Gaffney believes that the market is again confident that they are going to “stay out of the way and that we’re going to see continued growth and actually a good environment for stocks going forward.”
The Street also recommended buying Apple stock before the start of July. Apple stock tends to perform the best in July and August. Investor sentiment likely starts improving a few months before the launch of the iPhone in September and the holiday shopping season.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
HONG KONG, June 24 (Reuters) – Hong Kong cyber activists are backing up articles by pro-democracy tabloid Apple Daily on censorship-proof blockchain platforms after the newspaper was forced to shut down as it became embroiled in a national security law crackdown.
The latest drive to preserve the paper’s content comes after activists rushed to upload documentaries by local broadcaster RTHK investigating people in power after the media outlet said it would remove materials older than one year from its social media platforms.
Under the national security law, the Hong Kong government can request the blocking or removal of content it deems subversive or secessionist, raising fears over internet freedom in the global financial hub.
The Hong Kong government says use of the internet will not be affected so long as its use is within the law.
“Law enforcement actions taken by Hong Kong law enforcement agencies are based on evidence, strictly according to the laws of Hong Kong, and for the acts of the person(s) or entity(ies) concerned,” a spokesman for the Security Bureau said.
This year, the company that approves internet domains in Hong Kong said it would reject any sites that could incite “illegal acts”. Internet service provider Hong Kong Broadband Network (HKBN) said it had blocked access to HKChronicles, a website offering information about anti-government protests.
Fearing the security law could bring elements of China’s great firewall to Hong Kong, limiting access to dissenting views, 21-year-old Ho – who works in tech and did not give his first name because of the sensitivity of the matter – began this week to upload Apple Daily articles on decentralised file storage platform ARWeave.
After midnight, as the printers ran one final time, Apple Daily shut off its website and erased all its social media platforms after authorities froze company-related assets as part of a national security probe.
“I’m not doing this because I love Apple Daily, it’s what needs to be done,” Ho said. “I never thought that Apple Daily would disappear so quickly.”
Police froze assets of companies linked to Apple Daily and arrested five executives last week, moves that led to the newspaper printing its final edition on Thursday.
Authorities have said dozens of Apple Daily articles may have violated the security law, but there was no suggestion that Apple Daily content would be blocked or censored.
Similar to BitTorrent, ARWeave breaks down a file into bits of information distributed over an open network of anonymous computers around the world. On its website, it describes itself as a “collectively owned hard drive that never forgets.”
As of Thursday, more than 4,000 Apple Daily articles had been uploaded on ARWeave. Hundreds of RTHK programmes dating back to 2012 are also available.
Another programmer, Kin Ko, 47, has been building a decentralised registry called LikeCoin. The blockchain platform helps internet users identify the metadata – creator, date, time, location, version – of the content through a unique number called an International Standard Content Number (ISCN), akin to a book’s distinctive International Standard Book Number.
Any changes made to the content would be known and tracked through changes to its digital fingerprint.
The digital repository is still in its beta phase and months away from launching officially. But online pro-democracy outlet Citizen News told Reuters its has already used LikeCoin to catalogue its images.
Ko’s initial idea was to create a platform that could authenticate any type of content, and did not expect his platform to be embraced so enthusiastically by pro-democracy activists.
But, he said: “History must not be determined by those in power.”
Editing by Marius Zaharia and Gerry Doyle
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