Soon after Apple disclosed its latest earnings report, its shares surged upwards, smashing previous records on the stock market. But what’s even more interesting is that the investments gurus are convinced that the tech giant is going to soar a lot more higher in the future in terms of earnings.
Yesterday, Apple’s shares arrived at $136.70 per share, providing the company with a total market capitalization of $717.28 billion. Its only the second month of the year and the company’s stock has escalated by 17 percent so far. Meanwhile, Google parent Alphabet has a net worth of $580.92 billion at present and its stock has ascended by 6 percent.
Since Apple posted its first year-over-year revenue growth in several quarters, analysts round the globe are electrified and are pronouncing confidence in the tech behemoth. Though the company may have to face several hurdles on its way, merely the prospect of an iPhone 8 this year is creating a positive buzz among the market analysts. The possible features of the handset include a better design, augmented reality and favorable replacement cycle, wireless charging could all be features worth gambling on.
Apple reported their first quarter earnings on 31st January, and since then as many as nine analysts have raised their stock price targets. Some of them include:
- Katy Huberty, analyst for Morgan Stanley raised her target from $136 to $150.
- Simona Jankowski, analyst for Goldman Sachs raised it from $133 to $150.
- Wamsi Mohan, analyst for Bank of America Merrill Lynch raised it from $140 to $145.
- Michael Walkley, analyst for Canaccord Genuity raised it from $142 to $154.
Well, its a well known fact that these stock analyst projections usually turn out to be true in a very short term, because as the analysts raise targets, inspired investors bid on the stock and increase its value.
The company has to, however, release the earnings of two more quarters before they will come out with the highly awaited next segment of the iPhone. And when that happens, the analyst are quite expectant of another positive change in the stock market.
Apple is a very big name in the tech world with a presence in every major country, therefore, dealing with such insane expectations is nothing new to them. Still, after the year which witnessed downfalls in the sales of iPhone and iPad as well as the annual revenue, it should be good to learn that analyst are raising their faith in the company.