Apple stock nears record high. Apple has regained its rhythm.
Shares of iPhone maker hit $ 133.82 at the start of trading Monday, placing Apple less than $ 1 below its $ 134.54 intraday trading high reached in April 2015. Apple stock finished the day at $ 133.29, beating its previous record closing price of $ 133, set in February. 2015.
Soaring stocks, pushing Apple (() at a market capitalization of $ 700 billion, comes in the midst of renewed optimism for the iPhone.
Goldman Sachs raised its share price target on Monday, citing the likelihood that “major new features” such as “3D detection” will be added to the next iPhone model, according to an investor note provided to CNNMoney.
Apple’s previous high had been set six months after the redesigned iPhone 6 and 6 Plus, kicking off what CEO Tim Cook described as the “mother of all upgrades.”
Since then, however, Apple has given up its tradition of overhauling the iPhone every two years. The new models on the market today are almost identical to the iPhones available in late 2014.
The long wait, combined with this year marking the tenth anniversary of the iPhone, has only been waiting for Apple to be on the verge of significantly revising its smartphone and boosting demand.
Apple’s annual sales fell in fiscal 2016 for the first time since 2001, as sales of the iPhone, still the majority of its business, fell in three consecutive quarters.
Apple even cut its CEO’s salary by 15% due to the company’s inability to meet its performance targets for sales and profits.
But this defeat streak has just ended.
Apple sales started to increase again in the December quarter, driven by stronger demand for the iPhone – especially the larger and more expensive iPhone 7 Plus.
The company sold 78.3 million iPhones for the quarter, setting a new record. At least part of this may be due to Samsung smartphone recall problems.
Mark Moskowitz, an analyst at William Blair, wrote in a note to investors this month: “The difficulties with the Samsung Note 7 have probably helped.”
The iPhone isn’t the only reason Wall Street is so excited about Apple. There is also President Trump.
Despite Trump’s clashes with Apple during the campaign, investors are now optimistic that Apple will benefit from at least one Trump proposal: lower taxes on the cash that US companies bring from their accounts to the foreign.
Apple currently holds $ 230 billion in cash in foreign accounts. If Trump and Congress make it cheaper for Apple to return this money, it could be used for acquisitions and buyouts.