The stock market rollercoaster is going full bore. Up, down, up, down… But, Apple stock will rocket on 5G iPhone demand, ushering in a new super cycle, one analyst says.
After plummeting 16.5% on worries over the coronavirus, Apple shares reversed course, driving Monday’s broad stock-market slingshot rally. On Monday, Apple jumped 9.3%, the stock’s best one-day rise in more than 11 years.
The truth is, Apple bulls never lost faith. While the company has cautioned that March-quarter revenue won’t hit its original guidance range of $63 billion to $67 billion, due to both supply-chain and demand issues related to the virus, there’s spreading optimism that demand is being delayed, not destroyed — that people who don’t buy their next iPhone in the March quarter will simply buy it a quarter or two later.
He contends that a “perfect storm of demand” is forming for Apple — and that 350 million of the company’s 925 million iPhone customers are “in a window of an upgrade opportunity.”
While the last few weeks has been an exogenous ‘shock event’ to Apple’s ecosystem on both the supply and demand side due to its China exposure, we believe this will be short lived as the longer term 5G super cycle thesis and services re-rating remain the crux of our bull thesis on Apple for the next 12 to 18 months… Clearly there will be some speed bumps along the way as Cupertino navigates the coronavirus outbreak. However, we continue to focus on the golden installed base, pent up iPhone upgrade demand activity, and 5G super cycle on the horizon as core components of our bull thesis, along with the $50 billion+ annual services business. — Wedbush analyst Daniel Ives
MacDailyNews Take: Yup. Apple’s 5G iPhone will mark the beginning of a multi-year super cycle.
Just as iPhone this year is all about the camera, next year will be all about 5G. Get ready for the Mother of All iPhone Super Cycles! — MacDailyNews, December 23, 2019