Apple Finally Joins In The Rally

Roughly a month after shares crashed in response to a bearish note from Goldman Sachs, Apple Inc. AAPL is on track to close at its highest level since so-called “tech wreck Friday” after five consecutive daily gains.

Back on June 9, Goldman Sachs analyst Robert Boroujerdi said he sees a “valuation air pocket” in the market driven by what he calls the five FAAMG stocks: Facebook Inc FB, Amazon.com, Inc AMZN, Apple, Microsoft Corporation MSFT and Alphabet Inc GOOGGOOGL.

Boroujerdi’s comparisons between the performances of the FAAMG stocks and the high-flyers of the Dot Com Bubble certainly struck a chord with investors, and Apple’s stock plummeted from above $155 to as low as $142.51 within two days. Since that time, Apple has traded mostly sideways between $142 and $148.

Related Link: Goldman Compares 'FAAMG' Stocks To High-Flyers Of The Dot-Com Bubble

In that time, good news for Apple investors has been hard to come by. On June 12, Mizuho downgraded the stock from Buy to Neutral and dropped its price target from $160 to $150.

On Wednesday, Bank of America reported that the highly-anticipated iPhone 8 may be delayed by at least three weeks after analysts met with suppliers in Asia.

However, the recent bullish momentum in the stock may be a sign that investors have short memories when it comes to Apple. With the stock back above the $148 level, it has only its 50-day simple moving average at $149.25 to clear to be back on the track to $155.

Despite Apple’s rough June, the stock is still up 27.7 percent in 2017.

Joel Elconin contributed to this report.