Apple Shares Hit Record High To Take iPhone Maker’s Market Value Near $1 Trillion

0
68

Apple Inc shares hit a record high on Wednesday and the company neared a $1 trillion valuation, after the company forecast blowout, current-quarter sales and analysts said a September launch of new iPhones set the stage for sustained growth.

The company’s shares rose 4.7 per cent to a high of $199.26 in early trading – within striking distance of the $206.49 mark that will give it a trillion-dollar valuation. Including Wednesday’s gains, the stock has risen 17.5 per cent this year.

Apple forecast revenue of $60 billion to $62 billion for its fiscal fourth quarter, beating the $59.6 billion analysts had expected, according to data from Thomson Reuters.

The iPhone maker usually launches new mobile models in September, which includes a few days worth of sales in the fiscal fourth quarter.

“We believe Apple is likely to launch three new iPhones in September with possibly lower price points, and greater segmentation could lead to YoY unit growth in C2019,” Canaccord Genuity analysts wrote in a client note.

“We think the lesson Apple’s management has learned from the iPhone X is when you sell a smartphone for more than $1K you can sell fewer units and still reap the financial benefits,” DA Davidson analyst Tom Forte said.

Apple sold 41.3 million iPhones in the fiscal third quarter, half a million less than expected. But the average iPhone selling price topped expectations by $30, hitting $724.

On a conference call on Tuesday, Chief Executive Officer Tim Cook hinted at a content project run by two prominent television executives hired from Sony Corp, without giving details.

“We are really happy to be working on something, we are just not ready to talk about it in depth today,” Cook said.

BTIG analysts said Apple is likely to build its way into the market rather than buy their way in.

Of the 40 analysts covering the stock, 26 have a “buy” or higher rating and 14 are on “hold.” The median price was $210, pointing to a valuation of over $1 trillion.

LEAVE A REPLY

Please enter your comment!
Please enter your name here