On this valentine day, the elephantine tech corporation is in love with Wall Street again. One of DJIA’s (Dow Jones Industry Average) 30 companies, Apple Inc. share price is an all-time record high. On Tuesday, 14th February 2017 Apple share was $135.01. Nonetheless, some are saying Apple’s share price resurgence is deceiving.
World’s most capitalized company
As of Tuesday Apple’s market capitalization is $714.66 billion which makes the company world’s largest capitalized corporation. Additionally, Alphabet Inc. comes second on the list with a capitalization of $576.79 billion.
How did Apple Buck?
iPhone 7 plus sales
Though the iPhone company was suffering from sluggish sales through most of 2016, but the sales bounced back. During last quarter the iPhone maker set a new record selling 78.3 million iPhones.
Apple’s Service Revenue Division
On the other hand, Apple’s service revenue division did a splendid job earning $7.2 billion dollars in the first quarter as Forbes reported. Moreover, it was as much as 18% more than the previous year. Additionally, App Store alone made $3 billion in December. Apple CEO is planning to focus more on the service division. Consequently, it is already working on airing TV shows, Planets of the Apps and Carpool Karaoke.
Advent of iPhone X
However, in this very year, Apple is going to celebrate the 10th anniversary of iPhone. People familiar with the matter are expecting to celebrate Apple will bring an ultra sophisticated iPhone. As CNN described, “ Goldman Sachs raised its price target for the stock on Monday, citing the likelihood of ‘major new features’ like ‘3D sensing’ being added to the next iPhone model, according to an investor note provided to CNNMoney”.
An open fight was going on between Donald Trump and Apple which made investors worried. However, investors are relaxed now that at least one of Trump’s proposals might benefit Apple Inc. According to the proposal, the technology giant company can bring $230 billion cash money from overseas at a cut tax rate.
Is the resurgence meaningful?
Two years ago in 2015 Apple’s market capitalization was $750 billion which is $36 billion dollars more than today’s valuation. For a pretty long period of time, Apple failed to meet its target which eventually triggered CEO’s 15% salary cut. As a matter of fact, in the last 2 years, the multinational technology company accomplished a buy back around $70 billion. Despite the buyback, the company could not reach its target of constructing a trillion dollar market capitalization.