What you need to know
- Apple shares are a little more than $5 from a new all-time high.
- Strong iPhone 11 sales are expected to push share prices north.
- Apple currently has market cap of $1.015 trillian.
Apple could be set to see its share price reach a new all-time high, according to a report by Bill Maurer of finance website Seeking Alpha.
The belief is that a combination of an already strong price as well as impressive iPhone 11 demand could be enough to give Apple shares a bump beyond their previous high. The potential shown by Apple's growing services business is also a contributing factor, says Maurer.
"Recently, there have been a number of positive notes out from street analysts that have helped the stock move higher. For example, Jefferies came out changing its rating from Neutral to Buy. But it also raised its price target by a whopping $50 to $260, primarily citing a strong iPhone brand and the massive opportunity for services growth ahead. JPMorgan also raised its price target to a street high $265 on good sales momentum for the iPhone 11 line, with the potential for another off-cycle new phone launch next spring that could be quite important as I previously discussed. Finally, Evercore came out with a note this week discussing the potential for iPhone upside, keeping an Outperform rating and $247 price target."
Maurer also notes that the ongoing tensions between the United States and China could impact Apple's stock price in the coming weeks. It's all down to tariffs and whether they're delayed once again.
With four weeks until earnings, it is definitely possible that Apple shares hit a new high before the report. I think the most plausible scenario where that occurs is an easing of trade tensions between the US and China. The two countries are scheduled to meet again this month, and tariffs that were previously supposed to start on October 1st were pushed back to the 15th. If that date gets pushed back again, or we see a delay of the next round of tariffs slated to start in December that features even more Apple products, the market likely will react in a very positive way.
Apple shares sat at $224.59 at the time of writing which is around $5 off the number needed to give Apple a new all-time high share price. As Cult of Mac notes, the current numbers give Apple a market cap of $1.015 trillian, making it one of the most valuable businesses on the planet.