By
Godfrey Benjamin
April 23rd, 2024
Apple stock is up by 31% year to date and is gradually inching towards new highs.
Stock of American multi-tech giant Apple Inc (NASDAQ: AAPL) was trading about 3.5% lower on Thursday December 16th due to the recent surge in Covid. The company was earlier forced to close three retail stores as a result of a spike in new cases – and further postponed the reopening. Overall, Apple underperformed both in the broader market as well as the rest of the tech mega caps.
The Federal Reserve also recently suggested that interest rates will rise, which triggered widespread selling in the tech sector. Consequently, the NASDAQ Composite is also down by about 2.4%.
Furthermore, there are concerns that the weak sales of the iPhone in China could be adversely impacting Apple stock. Although recent data shows that iPhone sales in the East Asian nation were up 4% YoY in November, it is still moot. This is because iPhones have been routinely giving up market share to Chinese-based Android phone manufacturing brands since last month. However, Apple also previously announced that it expects to launch a cheaper iPhone 5G model somewhere in the price range of $399. At the lower price, the American tech giant hopes to sway Android-inclined end users that worry about price.
Apple Stock Still on Course to Win Big
These new developments come as Apple stock is up by 31% year to date, and is gradually inching towards new highs. As of press time, the tech giant’s stock is changing hands at $172, with $200 firmly in its sights. This clearly shows that there is still a strong case for investor optimism.
Investor optimism might also be because of a few groundbreaking projects Apple has in coming years. For instance, the tech company is releasing a new device that uses augmented reality (AR) and virtual reality (VR) next year. Also, much further down the line is its planned launch of the much-anticipated Apple Car.
Furthermore, Apple is coming off a strong earnings report for the fiscal fourth quarter. In addition, the leading tech company is also close to hitting a market cap of $3 trillion for the first time. iPhone revenue went up 47% YoY to approximately $39 billion, and investors continue to have faith in the firm’s service business.
The Metaverse Is Here to Stay
Just like with most other leading tech brands, Apple is also gearing up for its eventual foray into the budding metaverse. The metaverse, growing popular in the tech sector, is a digitized universe that runs parallel to real life. The offering also provides multibillion-dollar opportunities for companies to tap into, and a seemingly new life for people. According to syndicated research and consulting firm Emergen Research, the metaverse could generate about $829 billion in revenue by 2028. Furthermore, within that same projected time frame, this also translates to a compound annual growth rate of 43%.
Other prominent tech corporations staking their claim to the metaverse include Microsoft, and Facebook. The latter even recently rebranded its name to Meta Platforms Inc as a strong display of conformity.