Apple reported earnings this week and the stock market loved what they had to say. Their earning beat expectations handily and the stock reacted by a pop of 6%. It’s giving back a little bit today, but remains very positive after yesterday’s report.
Just a few short months ago, the stock was almost left for dead. The commentary was that they had fallen behind. People said the days of significant growth were behind us. The talk about the company was that it was a one trick pony, the iPhone. And there was a lot of skepticism after the loss of Steve Jobs.
The stock has been up since it’s low last year. Obviously, not everyone agreed with the negativity because the stock has been bid up. From a low in the 90s to about 130, this has been a big winner.
Will we see it back at it’s previous highs? Very possible if you look at the trajectory recently.
Driving the stock now is the possible return to growth. Analysts are calling for another super cycle due to the upcoming iPhone 8. This iPhone is touted to have a lot of new features that will drive mass purchasing. This will be the 10 year anniversary of the iPhone, which is why Apple appears to be putting extra emphasis on it.