Investors at Wall Street have reacted positively to what they saw and heard from Apple during the Worldwide Developers Conference organized by the company in a virtual environment for the first time because of the novel coronavirus pandemic.
This was evident after at least seven analysts increased their price targets on Apple’s stock after the company unveiled its latest iOS 14 and several other new features. Some of the analysts even raised their targets as high as $400 a share which was at 10 per cent premium to the current stock price of the iPhone maker.
The company has noted a total surge of 25 per cent in its stock prices so far this year till this Tuesday with a rise of 2 per cent in its share prices on Tuesday to about $364.
The surges in its share price also upped the total market capitalization of Apple to almost $1.6 trillion helping the company to cement its place as the most valuable company in America. It has also been the second best performer in the Dow in 2020, surpassed only by the performance of rival Microsoft at the United States stock market whose stock price has surged by almost 30 per cent so far this year and its worth is just a shade below that of Apple at about $1.5 trillion.
With another surge of apple’s stock price by 20 per cent, the total valuation of the company will reach a market valuation of $2 trillion and for the company to reach that magic valuation number, the stock price of the company needs to reach a value of $461.89.
But how soon can Apple reach that magic number, if at all.
However, despite the positive sentiment in the market emerging out of the company’s WWDC, there are many analysts who are still skeptical about the potential of the rise of Apple’s shares to reach the level needed to become a $2 trillion company given the fact that the shares of he company has surged already so much this year.
The consensus price target for Apple’s stock from the 39 Wall Street analysts that follow the company is about $343 — 6% below its price as of Tuesday morning.
And China Renaissance Securities analyst Jason Sun quoted the highest price target for Apple stocks at just $410.60.
While there can be skepticism about whether Apple will be able to become a $2 trillion company soon, one this that the markets need to be reminded of is the fact that he iPhone maker has sprang up surprises for the market on multiple occasions previously and proved doubters wrong.
(Adapted from CNN.com)