Apple shares rose to a new high on Tuesday as well as intraday after recovering from the March slump caused by coronavirus. In addition, it is clear that investors believe that Apple (NASDAQ 🙂 has much more ammunition in stock to get its shares even higher.
AAPL Weekly 2017-2020
The current rally has been so strong in the past three months that the iPhone maker's stock is now trading 24% higher for the year, defying expectations that an economy in recession will turn customers away from expensive gadgets. Apple. Shares closed at $ 366.53 yesterday, up 2.13% for the day.
What fuels the recent momentum are the positive aftereffects of Apple's virtual conference for software makers that took place earlier this week. The event showed that the company still has a lot to offer to keep growth going. At the event, Apple introduced a range of software additions to its family of gadgets, including the most significant changes to the iPhone home screen since the product was released in 2007.
Users can add widgets placed between the typical grid of apps, which can be set to different sizes and current information, such as weather or a calendar, which is updated throughout the day. The Apple Watch is provided with tools for sleep tracking and hand wash detection.
One of the most exciting changes was Apple's decision to sell Mac computers using internally designed processors, replacing Intel (NASDAQ 🙂 chips. The first Macs with Apple's own chips will be available by the end of this year.
For users, this means that future Mac devices will be much more like the iPhone or iPad. The battery life should be longer and the performance better. Moreover, the new Mac iteration can run native iPhone and iPad apps.
More analyst upgrades to the stock
These announcements caused upgrades from Wall Street analysts following the stock. The consensus: Apple & # 39; s shares have more room to turn, even after the remarkable stock upturn this year.
UBS increased its 12-month price target from $ 325 to $ 400, representing an increase of nearly 12% from here. UBS analyst Timothy Arcuri said in a note Tuesday:
"In addition to improvements to AirPods, most announcements were software-related innovations and focused on using integration to make the ecosystem even more sticky."
Bank of America also repeated its buy score after the upgrades, with a 12-month price target of $ 390.
"Perhaps the biggest takeaway from today's event was the reassurance that Apple is still driving innovation and new ways to use technology hardware and software," said a letter from the bank.
"Whether by AirPods that include surround sound and spatial audio, the watch supports more health exercises, tracks user dance movements, and tracks sleep."
Still, investors would be wise not to ignore potential risks that could stunt Apple's short-term growth, especially when the global economy is still in recession and the COVID-19 pandemic remains rage.
Keep an eye out for users who hang on their phones for longer, or keep upgrading, even if the economic conditions are tough. Although Apple announced it in April, it did not issue guidelines, the first time in more than a decade because of the ongoing disruptions to the pandemic.
Bottom Line
Through the latest upgrades, Apple showed that its innovation machine works full time despite coronavirus complications. The Cupertino, California-based company just continues to generate future growth opportunities and more upward for shareholders.
