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Apple shares are soaring to new heights this year.
Topline: For the fifth time this month, Apple stock has hit a record high, with shares rallying thanks to optimism from Wall Street analysts, better-than-expected iPhone 11 sales and the imminent launch of the new Apple TV+ streaming service.
- Apple stock, which currently trades at $243 per share, is up over 50% so far this year and over 100% in the past three years; the company’s market value has reached nearly $1.1 trillion.
- On Tuesday, Morgan Stanley upgraded its price target for the stock to $289, citing estimates that Apple TV+, which launches next month, could generate $9 billion per year in revenue by 2025.
- Beyond Apple TV+ boosting Apple’s services business up to 20% next year, Morgan Stanley analyst Katy Huberty also predicts a return to growth for iPhone sales—spurred by the success of the iPhone 11, which Apple CEO Tim Cook has said is off to a “very strong start.”
- Earlier this week, Raymond James analysts predicted that Apple shares could rally a further 20% this year, thanks to higher prices for new iPhones as well as growth opportunities in 5G.
- Apple stock first broke its previous all-time high earlier this month, thanks in large part to increased optimism about trade negotiations with China—since the iPhone maker has long relied on China as a core manufacturing base.
- Including the new peak of $243 per share set on Wednesday, Apple has now set five new all-time high records this month—on October 10, October 11, October 18, October 21 and October 23—according to FactSet data.
Surprising fact: Despite increasing votes of confidence from Wall Street recently, there are still some skeptics out there: 52% of analysts say “buy,” 35% say “hold” and 13% say “sell,” according to Bloomberg data.
What to watch for: Fourth-quarter earnings, which Apple reports on October 30. Revenue for that period is expected to grow to nearly $63 billion, a marked increase from $53.8 billion last quarter.
