Apple Stock Soars to New Heights
Wall Street’s Vote of Confidence
Apple’s stock reached an all-time intraday high on Thursday, thanks to a boost of confidence from Wall Street. Wedbush analyst Dan Ives raised his price target to a Street-high $325, predicting a “golden era of growth” for the tech giant in 2025.
The AI-Driven iPhone Upgrade Cycle
Ives believes Apple is on the cusp of a multi-year AI-driven iPhone upgrade cycle, which is still being underestimated by the Street. He notes that Apple’s AI strategy, led by Apple Intelligence, will transform the company’s consumer growth narrative over the coming years.
Record-Breaking Performance
Apple stock touched $260 early Thursday, a record intraday high, before modestly paring gains. The stock is on track to notch another record close, building on its previous high of $258.20 on Christmas Eve. Shares have rallied over 11% in the past month, pushing the company’s market cap towards $4 trillion.
A Winning Streak
After a tough start to the year, Apple is closing 2024 on a winning streak. The company faced challenges such as struggling iPhone sales, rising competition in China, and clashes with antitrust regulators. However, early data from the iPhone 16 rollout and positive iPhone shipment data have engendered confidence in Apple’s AI strategy.
Fourth Quarter Earnings Report
Apple’s fourth quarter earnings report in early November showed the tech giant beating expectations on iPhone sales, despite missing estimates overall. Shares began to climb in early November to new highs as Apple unveiled its new MacBook Pro lineup and added ChatGPT and other Apple Intelligence AI features for the iPhone, iPad, and macOS.
Outperforming Peers
Apple has outperformed several of its peers over the past month, with shares gaining over 11%. In comparison, Meta rose 6.7%, Microsoft climbed 4.4%, and Nvidia popped 1%.
Macroeconomic Uncertainty
Despite the optimism, macroeconomic uncertainty could create headwinds for Apple. Trump’s tariffs on China could impact prices for Apple products assembled in the country, while the US Federal Reserve’s projection of lower interest rates in 2025 could lead to persistent higher rates and sticky inflation, dampening consumer confidence heading into the new year.
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