It’s not showtime for Apple (AAPL) until Monday. But investors are already piling into the stock.
Shares of Apple are riding the Nasdaq rally Thursday – as shares are racing up $1.16 to $129.76. But the gains have been long in the making, as shares of the stock have raced higher the past eight trading sessions, rising 2.7% during the time period. That brings the company’s market value to $755.8 billion.
What’s driving the stock? Investors are already eagerly anticipating just how strong iPhone sales will be during the quarter. Analysts are calling for the company to report 29.5% higher adjusted earnings of $2.15 a share. If Apple delivers the profit as expected, Apple’s profit will be 5.2% of the Standard & Poor’s 500 total earnings, says Howard Silverblatt of S&P Dow Jones indices.That’s greater than the contribution of the next two biggest earners – combined – J.P. Morgan Chase and Wells Fargo.
Some analysts think Apple could do even better – which is probably what’s driving up the stock. Steven Milunovich at UBS, who has a $150-a-share price target on the stock, says profit could come in 5% higher than the Street expects. UBS expect iPhone sales to hit 60 million, versus the 56 million expected by investors.
But investors driving the stock higher might be surprised – even if iPhone sales come strong, says Andry Hargreaves of Pacific Crest in a note to clients. He says the stock is worth $123 a share – as iPhone unit sales could fall in fiscal 2016 due to a falling number of new iPhone users and more normal handset replacement rates.
Who else is excited for Monday!
credit:usatoday
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