/Apple%20Inc%20logo%20on%20Apple%20store-by%20PhillDanze%20via%20iStock.jpg)
Apple Inc. (AAPL), headquartered in Cupertino, California, remains a leading force in the global technology sector. The company designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. With a market cap of $3.5 trillion, Apple also offers payment, digital content, cloud, and advertising services primarily in consumer, small & mid-sized business, education, enterprise, and government markets worldwide.
Companies worth $200 billion or more are generally described as “mega-cap stocks,” and Apple definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the consumer electronics industry. Apple transformed personal tech, leading innovation with devices like the iPhone, iPad, and Apple Watch, delivering seamless experiences and groundbreaking services.
Despite its notable strengths, Apple slipped 3.5% from its 52-week high of $237.23, achieved on Jul. 15 – marking its all-time high. Over the past three months, AAPL stock gained 19.7%, outperforming the Dow Jones Industrials Average’s ($DOWI) 9.1% gains during the same time frame.
In the longer term, shares of Apple rose 18.9% on a YTD basis and climbed 24.4% over the past 52 weeks, outperforming the Dow Jones Industrials Average’s YTD gains of 10.3% and 19.3% returns over the last year.
To confirm the bullish trend, Apple has traded above its 50-day and 200-day moving averages since early May, with slight fluctuations recently.
Apple's performance has been driven by its partnership with OpenAI to bring generative AI capabilities to its devices, which is expected to boost demand for next-generation iPhones. The company introduced Apple Intelligence, a suite of generative AI tools deeply integrated into its operating systems, with a focus on privacy. Analysts believe this move could supercharge Apple's business, especially with the upcoming release of the iPhone 16 in September.
On Aug. 1, AAPL stock closed down more than 1% after reporting its Q3 earnings results. It won back Wall Street by beating expectations and with announcements hinting at an exciting future in AI. The company's revenue increased 4.9% year over year to $85.8 billion, beating analysts' forecasts by $1.4 billion. Its EPS came in at $1.40, up 10.2% annually. The quarter profited from a 23.7% spike in iPad sales and a 14.1% increase in services revenue.
In the competitive arena of consumer electronics, Dell Technologies Inc. (DELL) has taken the lead over Apple, showing resilience with a 51% uptick on a YTD basis and a solid 104.5% gain over the past 52 weeks.
Wall Street analysts are moderately bullish on Apple’s prospects. The stock has a consensus “Moderate Buy” rating from the 31 analysts covering it, and the mean price target of $243.58 suggests a potential upside of 6.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
