Quick take on AAPL
The race for $1 trillion in market capitalization continues between Apple and Microsoft. Last Friday, Apple overtook Microsoft in the market cap race, achieving $1.068 trillion vs. Microsoft’s $1.049 trillion. It was the first time since April 25th, 2019 that Apple overtook Microsoft to become the largest firm in the S&P 500 based on market capitalization.
On Monday, the brokerage firm Raymond James raised the firm’s price target to $280 (it is currently trading at $240), as the demand for the iPhone 11 is proving to be stronger than initially expected. Raymond James analyst Chris Caso wrote in a research report “More stable near-term conditions coupled with the launch of a new SE model in early 2020 create a bridge to the 5G cycle, which we believe will continue to squeeze the stock higher.” The analyst believes that 5G will be the headline feature in the 2020 iPhones and will help drive demand for the next two years. Consumers who bought iPhones in 2018 and 2019 may be due for an upgrade in 2021 and therefore we could see double digit revenue growth in 2021.
J P Morgan also recently raised its price target on Apple to $265 citing stronger than expected demand for the new iPhones. If popular analysts correct about Apple, we might just see new records being broken multiple times over the next 6 months.