Market News & Analysis
Apple Hits Another Record High, More To Come?
Fiona Cincotta December 27, 2019 8:33 PM
Apple shares rallied on Thursday hitting yet another record high, cementing the best year in a decade. Shares are pushing higher in pre trading on Friday.
Early indications suggest that spending in the holiday period has been strong. Apple products were also widely cited as must have items on Christmas wish lists according to an Evercore ISI survey
The statistics are strong: Apple jumped 1.6% in the first post-Christmas trading session, its third straight session of gains, with December’s month to date gains reaching an impressive 7%, its 10th winning month this year.
Total gains in Apple this year top 80%, compared to the S&P’s almost 30% increase. Gains in Apple are also well ahead of rivals Amazon which is up 23% across 2019 and Microsoft which is up 55% over the year.
A year of 2 halves
Investors would be forgiven for believing that 2019 would be a much weaker year for the stock after Apple cut its revenue outlook for the first time in 20 years in January and the US – China trade dispute dragged on. However, the mood towards Apple turned notably bullish in the second half of the year, thanks to improved sentiment surrounding its services business, including video streaming and subscription video gaming service. Additionally optimism surrounding its 5G iPhone offering expected in 2020 and an easing of trade tensions between the US and China providing a more positive economic backdrop have resulted in many firms upping their price target on Apple.
28 firms recommend a buy on Apple,
14 are neutral
7 recommend a sell
The next challenge for Apple will be its results in January. Expectations are for earnings growth of over 8% and revenue growth above 4.5%. iPhone sales are expected to be in the region of 66.7 million units in Q1. In 2019 iPhone sales accounted for around 55% of Apple’s total revenue.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.
Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.