Connect with us

Business

Apple Soars on iPhone 8 Speculation

Published

on

Apple has long been considered a blue chip stock. With a market cap of over $700 billion, the iPhone maker is a household name with an iconic logo. Yet, in May of 2016, Apple shares hit an all-time low. Now, just nine months later, shares have rebounded to an all-time high of $133.55. What’s going on with Apple? Can the ride continue?

Are We Going To See iPhone 8 Soon?

Apple CEO Tim Cook has managed an amazing turnaround for the tech giant.over the last year. With the stock being all over the place, investors have to be pleased to now see it surpass its all-time high from 2015. But what’s got share price up so high? And can it continue?

There are a few factors involved in Apple’s sensational comeback. One of the biggest is Warren Buffett and Berkshire Hathaway’s new stake in the company in 2016. April of 2016 saw slumping iPhone sales, which caused Apple shares to tank following a horrendous second-quarter earnings report that saw the company’s first quarter of lower revenue in 13 years. At a time when other major investors like David Tepper and Carl Icahn liquidated their shares of Apple, Buffet and Berkshire Hathaway bought 9.8 million shares for $1.07 billion.

Buffet’s timing couldn’t have been better, as just a few months after Berkshire Hathaway’s buy in, Apple was the main beneficiary of Samsung’s Galaxy Note 7 fiasco. Apple’s main competitor saw their flagship phone begin literally exploding. Due to battery problems, the Galaxy Note 7 cost Samsung billions in replacement costs and losses, and is banned from being transported at all on air travel. Samsung halted production of the phone altogether and as a result Apple saw significantly better than expected iPhone sales, driving share price up further.

But the most significant factor in Apple shares reaching an all time high would be speculation about the iPhone 8. Apple’s newest phone is set to debut in 2017, and is rumored to be a big step forward for the smartphone maker, with this year’s iPhone following the virtual reality trend and improving on existing augmented reality technology. The iPhone would most likely have this in an iPhone rather than an added headset, giving customers something special to be excited about, with hopes of a spectacular 3D display.

But where does Apple go from here?

The fact is, there’s always a big spike in share price before the release of a new iPhone. Apple has a loyal following from its customers, and they passionately support any new Apple products. People were just as excited about the iPhone 7, but many users aren’t thrilled about the loss of an earphone jack and expensive wireless headphone replacements. Not much is actually verified about the iPhone 8, so while rumors may run rampant, reality may end up disappointing traders. And while Buffett bought his shares low, the question looms, at what point will he exit his position? If he liquidates his shares, Apple’s price instantly takes a nosedive.


 

Watch the video from Trusted Reviews on all the latest news, rumors and concepts of iPhone 8:


Apple is definitely a blue chip company, but is there room for it to continue to rise? Last time Apple hit an all time high in 2015, shares promptly dropped to an all time low within one year. Traders should hold a wait and see approach to the release of Apple’s newest phone. As a long term play, Apple makes for a juicy play, but for the immediate term, traders shouldn’t be surprised to see shares of Apple, Inc. (AAPL) dip back down a bit and hold steady.

Get to know more about President Trump’s economic advisor, Gary Cohn right here!

Follow us on Facebook and Twitter for more news updates!


The statements, views, and opinions of any article, contribution, editorial, or advertisement in this publication are not necessarily those of The Capitalist or its editorial staff, and are not considered an endorsement, sponsorship, or recommendation of any referenced product, service, issuer, or groups of issuers.

This publication provides general information about certain subjects, and should not be construed or taken as advice (legal, financial, investment, tax, or otherwise). Do not construe or take any information in this publication as a solicitation, offer, opinion, or recommendation to buy or sell any securities, bonds, or other financial instruments or to provide any legal, financial, investment, tax, or other advice or service about the suitability or profitability of any financial instruments or investments.

The Capitalist disclaims any liability for the accuracy of or your reliance on any statements, views, opinions, or information in this publication.


 

Continue Reading

Subscribe To Our Newsletter:


Copyright © 2020 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

[email]
[email]