Apple leaps to a new high
Bolstered by strong cash generation, Apple’s stock has hit a new peak in early trading on European exchanges.
Apple's (All Sessions) move above $2 trillion in market cap has captured the attention of the world’s media. There seems no stopping the giant, which continues to see its value surpass that of small countries, and indeed even the FTSE 100.
Even after its stock split, the stock price will be a crucial part of the Dow and S&P 500, and the company will retain its commanding position in the smartphone market. Apple continues to generate a huge amount of cash, with free cash flow hitting $71 billion for the past twelve months. This is the reason why the stock continues to rally.
Even as it continues to throw off cash, Apple is shifting away from its dependence on iPhones. The move towards services and their recurring revenues continues, helping to diversify the company. In such uncertain times, Apple’s proven performance record makes it a popular choice for investors.
It hardly needs saying, but Apple has been one of the best performers since the low in March, rallying 140% in price terms since the 23 March bottom. The only real weakness in the price came in late July, when the price finally moved lower for a time and neared the 50-day SMA. From there it has barely looked back and is set to open at a new record high today.
Short-term traders will continue to take advantage of the trend on the hourly chart; dips in this time frame have been frequent since the beginning of the month, but have provided strong risk-reward outlooks for bulls. Now that the price has rallied away from its moving averages and with stochastics and MACD at elevated levels it may make sense to await the next retracement towards the 50-hour SMA.
In a similar vein, the price is also significantly above its 50-day moving average ($401). A return to this level is not a given, but it would help to ‘reset’ the stock after its huge run-up. Markets are not always so obliging however, and 2019 is a case in point. Apple rallied from the end of September and did not revisit the 50-day MA until February 2020 during the Covid-19 selloff.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Related articles
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
