Thursday, April 8th, was another standout day for Apple stock. The shares of the Cupertino-based company rallied nearly 2% and closed the trading session above $ 130 apiece for the first time since February 2021.
It was the sixth straight day of positive earnings for the AAPL since March 30, when the stock was valued at $ 119.90. Since then, Apple stock is up about 9% in just one week, cutting some (but perhaps not all) of the upside opportunities that Apple Maven saw in stocks about a month ago.
What could spoil the fun?
Apple’s launch on Thursday could be thwarted by news of a shutdown in production of MacBook and iPad due to a lack of chips. Nikkei Asia said Thursday that Apple had to postpone orders for some components until the second half of the year.
Reduced production could mean delayed orders and delayed sales of Apple laptops and tablets. This is bad news as the Cupertino-based company will have to surpass such a high bar in 2021 to surpass the tough numbers of a pandemic year in both segments.
In addition, Apple’s battle with Epic Games, which has never been an upbeat topic of conversation, continued on April 8th. The App Store gatekeeper explained to a federal court in California why he doesn’t have monopoly powers over gaming apps, which is an argument in favor of Epic Games. do not buy.
Notwithstanding the above, Apple stock still found plenty of room to rise alongside (and more than) the rest of the US stock market.
What drove Apple stock higher?
In my opinion, Apple shares rose mainly for the following reasons:
- The report on claims for unemployment benefits for the last week was above the consensus forecast and levels of the previous week. While this could be seen as a bad sign for the economy, stocks in tech companies like Apple have benefited from an implied belief that a fragile recovery is conducive to investment in growth. Federal Reserve Chairman Jerome Powell echoed this view, calling the global economic recovery “uneven and incomplete” and reaffirming his commitment to monetary easing.
- On the morning of April 8, at least two Wall Street analysts (Needham and Piper Sandler) were published, both of which were bullish on Apple’s fiscal second quarter. This is very much in line with the idea recently expressed by Apple Maven that preliminary earnings reports are likely to be upbeat. The consistency of their release over the next three weeks could push Apple stock even higher.
Learn more from Apple Maven:
(Disclaimer: This is not an investment advice. The author may be one or more of the companies mentioned in this report. The article may also contain affiliate links. These partnerships do not affect editorial content. Thanks for supporting Apple Maven)