Apple has seen the longest-winning streak since 2003 with AAPL price rising for an 11th consecutive day in New York. Bloomberg reports that the rise of AAPL to $3 is accredited to the returned confidence of investors in the largest U.S. technology companies like Apple, Amazon, and Nvidia Corp.
In January 2022, AAPL per share value reached $182.55, and with that Apple hit a $3 trillion market value. However, news of production cuts dropped Apple’s market value drastically. Luckily for the tech giant, the current winning streak has taken it back into the green. Ross Gerber, chief executive officer of Gerber Kawasaki Inc. explained:
“What we’re seeing is the difference between companies that are actually performing phenomenally well and those whose future is harder to quantify. People are betting on the companies that are growing earnings the fastest over time.”
Enticed by discounts, investors have fled back to buy AAPL and shares of other tech companies
As per the report, those big tech companies had a difficult start to the year which were impacted by the Federal Reserve’s rise in interest rate multiple times. Higher interest rates hurt their current value of future profits “hurting growth stocks with lofty valuations, including technology.”
Luckily, the situation has changed because of discounts and with regained confidence, investors have returned with open wallets.
[…]But investors who initially fled the sector have started to come back, enticed by discounts and the belief large technology companies with strong balance sheets and broad exposure to fast-growing markets like cloud computing can continue to churn out bigger profits.
“The selloff got overdone, and took these big tech names down to levels that were very attractive,” said David Katz, chief investment officer at Matrix Asset Advisors. “Apple is a very strong and dynamic growth company, and it remains at the better end of the pack in terms of its valuation.”
Apple has announced to publish the Q2, 2022 earnings report on April 28 which will give a better picture of the company’s performance.