Apple, Inc. AAPL shares pulled back early last week immediately after the annual Worldwide Developers Conference as users, investors and analysts fretted over the hefty price tag of the Vision Pro headset.
New Highs Eyed: Sentiment reversed course subsequently and the stock quickly ran up to a new high on Monday, thanks to a three-session winning streak since Thursday.
Some of the strength is attributable to the broader market optimism as traders bet on a Federal Reserve rate pause in June. The central bank is set to announce its monetary policy decision for the month following the conclusion of a two-day meeting that begins on Tuesday.
Apple shares ended Monday's session at $183.79, up 1.56%, according to Benzinga Pro data. The upside helped the company beat its previous intraday high of $182.94 (Jan. 4, 2022), and its closing high of $180.43, reached a day before that.
$3T In Sight: Apple is currently the most valued public company in the world. At Monday's close, Cupertino's market cap was at $2.89 trillion — a product of $15.73 billion outstanding shares and the session's closing price of $183.79.
Courtesy Of YCharts
Microsoft Corp. MSFT is second next to Apple with a market cap of $2.467 trillion. Saudi Aramco, Alphabet, Inc. GOOGL GOOG and Amazon, Inc. AMZN follow, with their market caps at $2.094 trillion, $1.642 trillion and $1.299 trillion, respectively.
Incidentally, Apple surpassed the $3 trillion mark briefly in early 2022 before pulling back, owing to factors such as Russia’s invasion of Ukraine, supply concerns, economic worries, and COVID-19 production hiccups in China.
The Tim Cook-led company is now tantalizingly close to taking the honors as the only company above the $3 trillion mark. For breaking above the level, the stock has to hit $190.72, which means a gain of $6.93 from Monday's close.
See Also: Everything You Need To Know About Apple Stock
Technical Take: The 14-day relative-strength index, a momentum indicator, is at 73, suggesting the stock is in overbought territory.
The shorter-term 50-day simple-moving average is on the cusp of crossing over the 100-day SMA, often considered a bullish signal.
On the potential downside, the stock has support around the $152 level, which is the bottom of a triple-top formation that was completed in late-2022. Further down, it has support around the $130 level.
Chart Courtesy of Benzinga Pro
Apple Retains Flavor: Apple has weathered the macro and geopolitical challenges seen in the past two years. The company's sticky ecosystem is its strength. A user when pulled into the ecosystem remains a loyal customer throughout.
Apple's installed device base was at a record at the end of its March quarter, which could prove to be positive for its Services revenue.
Wedbush analyst Daniel Ives tweeted late Monday that the Street is focused on iPhone 15 upgrade cycle and services ramping into the fiscal year 2024.
"This next quarter is the appetizer before that great entrée," he said. "Some see a risky bet that does not make sense at the time," he added.
The rally required for Apple to scale the $3 trillion mark hinges on the consumer price inflation data that is due ahead of the market opening.
A tamer data could firm up expectations for a Fed pause and strengthen the broader market rally. Apple could also latch onto the optimism.
That said, since the market has baked in all these positive expectations, some moderation in the recent upward momentum cannot be ruled out.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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