Apple (NYSE: AAPL) stock price has crossed the $300 level for the first time since February as investors and analysts are betting on the largest tech giants’ future fundamentals. The majority of analysts believe Apple is likely to outperform the broader market trends due to the resumption of its supply chain in China along with the reopening of stores across the world.
Apple, which previously only depends on iPhone sales, has significantly diversified its revenue stream over the past couple of quarters. The latest dividend increase of 6% and $50bn in share buyback plan is also an indication of the management’s confidence in future fundamentals.
JPMorgan praised the strength of its services revenue as record services revenue of $13bn helped the largest tech giant to beat the second-quarter revenue expectations. Its second-quarter revenue came in at $58bn, up to $3.6bn from the consensus estimate. JPMorgan provided a price target of $350 with an overweight rating.
Apple stock price is currently trading around $310 after bottoming around $220 in March. The stock is trading in a green year to date following a rally of 16% in the last month alone.
“We are confident in our future and continue to make significant investments in all areas of our business to enrich our customers’ lives and support our long-term plans — including our five-year commitment to contribute $350 billion to the United States economy,”Luca Maestri, Apple’s CFO.
The company says its third-quarter revenue will get a negative impact as Wearables and iPhones are likely to decline Q/Q. However, the management believes revenue from services, iPad, and Mac is expected to grow Q/Q and on a Y/Y basis. Meanwhile, some investors believe the delay in the 5G iPhone fall launch could negatively impact its stock price performance.