By
Chimamanda U. Martha
April 16th, 2024
On Friday, Apple shares closed 10.47% up, $425.04 per share. In the early trading today, Apple (AAPL) stock is 1.50% up, $431.42 per share.
Last week, the U.S. tech giant Apple (NASDAQ: AAPL) reported its fiscal Q3 earnings that blew past Wall Street’s expectations and brought Apple stock to a new all-time record of $425.04 on Friday, July 31. Expected to slightly stabilize and slow down, Apple shares went further up instead, having risen by 1.50% in the pre-market by the moment of writing.
In the fiscal Q3, Apple reported revenue of $59.69 billion. Apple Q3 earnings per diluted share stood at $2.58, up 18 percent. International sales accounted for 60 percent of the quarter’s revenue. iPhone revenue stood at $26.4 billion for the quarter, an increase from the year-ago quarter.
Apple’s Strong Earnings Despite COVID-19 Pandemic
These impressive results have not only shown that the company stood the test of the coronavirus pandemic but also brought Apple stock to a new record. On Friday, Apple shares closed 10.47% up, $425.04 per share. In the early trading today, Apple stock is 1.50% up, $431.42 per share.
Luca Maestri, Apple CFO, said:
“Our June quarter performance was strong evidence of Apple’s ability to innovate and execute during challenging times. The record business results drove our active installed base of devices to an all-time high in all of our geographic segments and all major product categories.”
The third-quarter performance demonstrates Apple’s strength and flexibility. In extremely uncertain and unstable times, the company has managed to run smoothly and make a good profit.
Apple Stock: Best Buy Now?
Along with Q3 earnings, Apple announced a four-for-one stock split. In other words, investors will now purchase the company’s stocks at a price much lower than its market value of $380. Market analysts expect that this would be around $100 depending on the stock value by the end of August. The stocks would be distributed to the investors after the business closes on August 24.
Since the beginning of 2020, Apple stock has grown by as much as 44.74%. Many analysts are updating their price targets for the giant’s shares. For instance, Citi Research Analyst and Managing Director Jim Suva boosted his price target to $450 from $400. Piper Sandler analyst Harsh Kumar raised the price target for Apple to $450 from $310. RBC Capital Markets analyst Robert Muller has also upped his price target to $445 from $390. Of the 38 analysts tracked by FactSet who cover Apple stock, 26 rate it a buy, eight consider it a hold, and four say it is a sell. The new average target stands at $397.65.
Meanwhile, the Oregon Public Employees Retirement Fund, the largest pension fund in the US, has lowered positions in Apple. Despite the company’s strong earnings, the fund is more optimistic about Intel Corporation (NASDAQ: INTC). The fund has sold 55,600 Apple shares, 159,300 Microsoft Corporation (NASDAQ: MSFT) shares, and 12,000 Tesla Inc (NASDAQ: TSLA) shares. Instead, the Oregon Public Employees Retirement Fund bought 73,400 Intel shares.