Apple crossed the $2 trillion threshold on Wednesday and the stock finished 5% higher on Friday to bring its market cap to $2.1 trillion. The stock market has been extremely volatile (rapid change) which has provided the opportunity for some really big earnings.
Wild Ride
In the past year, Apple has gone up 134%. And in the past 3 months, the stock has risen 54%. If you actually take the lowest point that it hit in March, due to COVID, then it has gone up over 100% in that timeframe.
Why has it soared recently? Shouldn’t have COVID lowered company revenue? How can it go higher than it already is?
I don’t know. I’m honestly not an expert but I’ll give my input on the situation with no bias since I don’t own any stocks anymore.
COVID Opportunities
Why has Apple stock soared recently? Well the entire stock market has been rising since early April. Americans have been overwhelmingly optimistic about bouncing back from COVID. Much of that comes from the White House, as they have always downplayed the virus.
Even though the virus is progressing at alarming rates, Americans seem to want things to go to normal already even though it will make things worse. But that’s going a bit off topic.
Tech Love
Apple stock has also been on the receiving end of a healthy boost from a renewed love in the tech sector. After COVID, people wanted to invest in companies that could function well during another pandemic. And Apple fit that bill.
Technology has consumed our daily lives and Apple is at the front end of that. Apple also released the affordable iPhone SE when a time that money was tight. It was perfect timing and sales were better than expected.
Apple Stock Hitting Peak
And this recent boost has been due to the rumors of an updated iPhone release with 5G capabilities and the Apple stock is set to split at the end of the month.
5G has been the focal point in the tech sector and Apple is taking full advantage of that. And their 4-for-1 split is going to provide an extra push for the stock at the end of the month.
What does the Apple Stock split mean?
The price is set to drop to around $130 and this is going to drive demand even higher. Even though the market cap is staying the same, people tend to generally think that they’re getting an Apple stock at a great price.
But, in reality, they are buying a portion of the stock that was initially split. Either way, it’ll be a good time to buy because of that very reason, it’ll be cheaper and people will make impulse decisions to buy it at that price. It seems as though Apple reached the $2 trillion mark quickly over the recent year, can it go higher?
Apple $3 Trillion Club Soon?
This is the perfect time that the company could catapult the market cap to $3 trillion mark within a few months or even sooner depending on how the pandemic continues.
If you like Apple or not, you can’t deny that it seems to have no ceiling at the moment. But there definitely seems to be a bubble forming around the tech sector but it seems like Wall Street doesn’t care and that eventually those tech companies will provide what they’ve been promising.
Disclaimer: Do not base any investment decision on anything that you read on this post. I am not qualified nor licensed to provide advice on stocks and investing. This is an opinion piece mainly mean to spread some information about a certain situation. All claims in this article are speculative and should not be taken as advice. I do not own or plan on owning any stock or options from the companies mentioned above.
