Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Apple share price on watch as 'most significant' Apple event in years looms

Apple’s stock will likely be closely watched by investors in the lead-up and aftermath of the company’s upcoming Apple Event, which Morgan Stanley analysts have described as potentially one of the most significant in years.

In this article we examine:

The Apple share price is likely to be closely watched by investors in the lead up and aftermath of the tech giant’s upcoming Apple event, set to take place on October 13, at 10 AM Pacific Time.

In an event that Morgan Stanley’s Katy Huberty has described as ‘its most significant in years’ – Apple is expected to reveal a line-up comprised of four new iPhones and other potential devices.

Though Apple’s share price has faced selling pressure over the last month – amid a broad based decline in US tech stocks – enthusiasm around the company’s upcoming event appears to have driven up investor enthusiasm. On Monday, the stock was bid 6.35% higher to $124.40 per share – leaving Apple trading around the price range it stood at before initiating its August 28 five-for-one stock split.

Despite that short-term softness – it’s been a strong year for Apple and big tech more generally – with the iPhone maker up approximately 65% since January. This comes as investors have aggressively re-rated the stock over the last two years: During Q4 CY18 Apple traded ~12x earnings; it currently trades at ~37x earnings – well ahead of the Nasdaq’s PE of ~22x.

The 5G factor: The Apple event in focus

Centrally, many are expecting Apple to reveal a suite of 5G-compatible iPhones as part of tomorrow’s Apple event – with the tech giant’s cornerstone tagline for the event reading: ‘Hi, Speed’.

On a more granular level, speculation is that Apple will launch four new iPhone models, including:

  • A small, 5.4 inch iPhone 12 (the mini)
  • A regular, 6.1 inch iPhone 12
  • A 6.1 inch iPhone Pro
  • An upsized 6.7 inch iPhone Pro Max

Other products that may be revealed during Apple’s upcoming event include: an Apple branded wireless charging device, details of a new operating system, AirPods or even a long-rumored AirTags – a small Bluetooth tracking device that could be used to track small goods such as wallets and keys.

Morgan Stanley remains bullish before the Apple event

Despite Apple’s strong YTD performance analysts from Morgan Stanley (MS) have remained bullish on the stock heading into tomorrow’s event, recently saying:

‘We remain buyers of Apple shares ahead of the event and anticipate strong global iPhone demand to drive positive earnings revisions and stock outperformance throughout FY21.’

Off the back of this expected demand, MS raised their fiscal 2021 iPhone shipments forecasts to 220 million units up from 218 million units, arguing that:

‘We believe the iPhone 12 launch comes at a key time as iPhone replacement cycles have lengthened to over 4 years exiting FY20 […] beyond what we consider to be a structural ceiling.’

Apple share price: The technical outlook

Examining Apple’s price action from a technical perspective, IG’s Victoria Scholar pointed out that:

‘With the RSI pointing higher once again and posting higher lows. If the stock continues to rally, the next resistance level is likely to be at the all-time intraday high from September on the IG platform at $138.82.’

‘But before that the stock needs to break above psychological resistance at $130,’ it was added.

Apple last traded at $124.40 per share.

What are your thoughts on Apple?

Are you bullish or bearish on Apple in the lead up to the company’s Apple event? Whatever your view, you can use CFDs to trade both rising and falling markets, through IG’s world-class trading platform now.

For example, to buy (long) or sell (short) Apple using CFDs, follow these easy steps:

  1. Create an IG Trading Account or log in to your existing account
  2. Enter ‘Apple’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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