By
Godfrey Benjamin
April 23rd, 2024
Apple (AAPL) stock is rising, currently trading at around $355. The next milestone projected by experts is $400.
The stock of Apple Inc (NASDAQ: AAPL) remains one of the most sought after stocks in the market. The tech company’s stock has shown promising future growth trajectory since the company became the first company to attain a $1 trillion market capitalization in August 2018. Apple’s stock saw a 3.2% decline in its value during the coronavirus pandemic indicating the tech giant stock was not immune to COVID-19.
While AAPL has recovered from the decline that resulted from the pandemic, the company’s performance has amazed market participants this week. AAPL stock rose 1.9% in pre-market trading Tuesday to close at $352.08 representing a 2.65% boost after Citigroup Inc (NYSE: CITI) analyst Jim Suva predicted a $400 hit.
Today in the pre-market, Apple (AAPL) stock is also rising. It is up 0.98%, at $355.53.
Secret behind Apple (AAPL) Performance
AAPL has registered itself as a formidable innovator in the computer production industry. The recent spike in stock value as predicted by Jim stems from the plan by the company to roll out 5G iPhones by the end of the year. This product upgrade could spike a huge demand for AppleCare Support Services which would definitely boost growth.
The 5G iPhone products which will be launched in an Apple scheduled conference for September will usher in a new range of in-demand products that will help reposition AAPL. Jim Suva has highlighted the key catalysts he believes can drive Apple’s future stock performance.
Jim Suva stated:
“We forecast that share gains from Huawei (given restrictions on using North American chip technology, which would result in its smartphone sales being halted) could result in incremental sales of ~$8 billion to Apple. Huawei targets the mid- to high-end market segment, and hence its customers would likely shift to brands in a similar segment.”
In addition to Apple potential for market share gain, Suva noted:
“Apple Services continues to accelerate, specifically with the App Store (about 30% of Services revenue), as engagement with apps continues to accelerate, these trends remain a tailwind to the App economy, and consumer engagement with games and fitness apps remains at all-time highs even as restrictions have been eased.”
Suva’s forecast is already manifesting as the market has reacted to these and other positive indicators that will support AAPL dominance in the future.
Sustainability Factor for Apple
The company’s business model is generally reported as a sustainable one when compared to other tech companies. The company runs on 100% renewable energy based on data published by the company.
The ultimate sustainability factor for the business of the 21st century is in the ingenious creation of new products and services that the general masses can afford. While Apple prides itself as a company of class, setting the framework to reach more users to beat the competition will remain a valuable strategy to continue in business for decades to come.