Apple is set to open at a fresh record high of more than $500 per share ahead of its four-for-one stock split on August 31. The surge comes less than a month after topping $400 per share, and days after crossing the $2 trillion level for market value.
Martin Baccardax for TheStreet:
Just days after crossing the $2 trillion level for market value for the first time in history, Apple shares are set for a fresh record high of more than $500 per share heading into the Monday session as the world’s most valuable tech company extends its year-to-date gain past 70%.
“Over the last four quarters Apple has generated 6% year-on-year revenue growth, 12% year-on-year earnings growth, and 24% year-on-year free cash flow growth, despite iPhone revenue declining 1% year-on-year in the same period,” said Morgan Stanley analyst Katy Huberty, who carries an overweight rating with a $520 price target for the stock. “In our eyes, these results underscore the strength of Apple’s broad ecosystem of products and services,a change from past years where Apple was more reliant on the success of the iPhone to drive growth.”
Apple now accounts for around 7% of the S&P 500’s total market capitalization, and is worth more than the combined value of the benchmark’s 200 smallest companies, according to Reuters data and reporting.
The stock’s impact on the Dow Jones Industrial Average, however, is set to wane next week after the group announced a four-for-one stock split that will take effect on August 31. Monday’s pre-market gain, for examples, adds around 92 points to the Dow, based on its current share price in pre-market trading. A similar gain at $100.80 per share — when the split becomes effective on August 31 — would add only 23 points to the price-weighted average.
MacDailyNews Take: The news of the looming Mother of All iPhone Super Cycles finally seems to have begun being widely recognized, as evidenced by the string of record Apple stock prices. The surprise 4-for-1 split news was like adding nitrous oxide to AAPL’s engine.
So sorry to hear that. MDN will have to spend the day completely rewriting “Apple now worth 47 times Dell’s market value” (again!)
How do we upgrade our iPhones in the age of ‘rona?
It’s hard enough to get into an Apple store today. for in-person upgrades, how are they going to accommodate traffic for a pivotal new phone?
Um,..I’ve upgraded just fine for the last ten years by getting the latest phone shipped to me, no visit to a physical store necessary.
Is that uncommon?
Squiggles lives in the outer part of the Galaxy and, because of the Virus, the only major airline has cuts all routes to the area. With massive funding likely for the USPS, they could deliver when votes are picked up.
That’s a bit of a delay after new iPh release, but that’s what you get for living in the country. Call Elon, if you can’t wait.
So-called Apple Anal-cyst Rod Hall in “Car 54 Where Are You?” Hiding in utter failure shame I’m betting. Perhaps it’s time to stop using that 8-Ball.