2020-01-09

Apple's stock price has doubled in the past year, with a market value of $ 1.33 trillion


Apple shares rose 1.6% on Wednesday to close at $ 303.19. The company's share price hit a record high of $ 304.43, setting another record high. In the past 12 months, the cumulative increase in Apple's stock price has reached 101.1%.

Apple's stock price has doubled in the past year, with a market value of $ 1.33 trillion


According to foreign media reports, after Apple released App Store sales data on Wednesday, the company's stock price reached a record high. As of the close, the cumulative increase in Apple's stock price over the past 12 months has reached 101.1%, and its market value has risen to $ 1.33 trillion.


Apple announced on the same day that the App Store has brought developers $ 155 billion in revenue since its launch in 2008, up from the $ 120 billion disclosed in January 2019. The company also said that from Christmas Eve to New Year's Eve, App Store sales rose 16% to a record $ 1.42 billion; and on New Year's Day, App Store sales rose 20% to $ 386 million Single-day sales record.


Wedbush analyst Dan Ives said the numbers were "impressive", especially when he believed that Apple sold 67 million AirPods in 2019, well above his original estimate. 56 million pairs. In a research report released to customers on Wednesday, Ivis said that this shows that "Apple has a potential advantage in monetizing the installed base of 925 million iPhones worldwide in fiscal 2020 and beyond."


Apple shares rose 1.6% on Wednesday to close at $ 303.19. The company's share price hit a record high of $ 304.43, setting another record high. In the past 12 months, the cumulative increase in Apple's stock price has reached 101.1%. In the past year, only two of the S & P 500's constituents have risen more than 100%: AMD, which has increased by 130.5%, and Lam Research, which has increased by 119.1%. However, the two chip companies have market capitalizations of $ 53.3 billion and $ 43.5 billion, respectively, much smaller than Apple, which is currently the company with the highest market value in the United States. The Nasdaq Composite Index rose 32.4% over the same period, while the S & P 500 Index rose 26.4% over the same period.


Apple's stock price has also outperformed other Facebook, Amazon, Netflix and Google parent Alphabet in the past year. These five technology companies are also known as "FAANG".


Apple's stock price closed at $ 150.75 on January 8, 2019, and the shares outstanding at that time were about 4.715 billion. By the close of Wednesday, Apple's market value had increased by about $ 618 billion. If this part of the increased market value becomes a company, it can also become the fifth largest market capitalization company in the United States. According to data disclosed by Apple on October 18, 2019, the number of outstanding shares of the company has decreased to 4.443 billion shares through the continuous repurchase and cancellation of shares in the market.


Apple's stock price rose at a time when the company said it was shifting its focus to services, including the App Store, rather than the iPhone business. 2019 is particularly important for Apple's services as it launches many new services during the year. This year, Apple introduced Apple Card, Apple TV +, Apple TV Channel, Apple Arade, and Apple News +. These services join Apple's existing App Store, Apple Music, iCloud, Apple Pay and free Apple News lineups.


Analyst Avis reiterated Apple ’s “outperform” rating and a target stock price of $ 350 in the research report. The analyst said that Apple's stock price is expected to rise to $ 400 in the bullish market, which means that there is still a 32% increase from the current stock price. "We continue to believe that the growth in iPhone, AirPods and Apple services revenue will allow Apple to release a strong first quarter earnings report, and 350 million iPhone users are ready to replace their devices during the 5G super upgrade cycle."


Instinet analyst Jeffrey Kvaal expressed concerns about Apple, because the industry and the media are a bit too aggressive about the 5G telecommunications services that are being unveiled. Kowal said that although the App Store's sales data is "healthy, growth has begun to slow." He said that the data shows that app developers' revenue from the App Store in 2019 increased by 15%, which was lower than the previous year. 27%, which is also lower than his expected 20%. Kowal reiterated Apple ’s “neutral” rating and a target price of $ 225, which means Apple ’s share price will fall by 26%. Since December 2017, Kowal has rated Apple's stock as "Neutral" and has not changed.


"We think the 15% increase in the App Store in 2019 may be a conservative barometer of fiscal 2020 growth, as it reflects the downturn in the Chinese gaming market and trial subscriptions for Apple TV +." The analyst also predicts that the App Store ’s Revenue growth will fall to 10% to 16% in FY2021. (Compiled by Tencent Technology / Mingxuan)