- Stock has risen 11 straight days, adding roughly $400 billion
- Seen earnings estimates upgraded; defies report of output cut
Apple Inc. shares are heading for their longest winning streak since 2003, when the iPhone hadn’t even launched andNokia Oyjwas still one of the top cellphone makers in the world.
Shares in the world’s largest company rose 0.2% premarket on Tuesday, extending gains to the 11th straight day -- a rare feat in its 41-year stock market history. During the streak, it has added $407 billion in market value, roughly the size of Walmart Inc.
Leading the charge in big technology stocks bouncing back after a dismal start to 2022, Apple has seen its earnings estimates being upgraded by 7.2% this year by analysts, much faster than other stocks in the Faang group. Shares have also managed to dodge a Nikkei report about production cuts, leaving the stock just 1% away from covering 2022 losses and 4.7% away from a $3 trillion market value.
The rally in big tech even as 10-year Treasury yields reached 2.5% has left investors scratching their heads. The Cupertino, California-based company is perhaps living up to its reputation as a relative haven in a turbulent time for tech.
For sales trader Jim Dixon at Mirabaud Securities, it’s the mom-and-pop investors behind the stunning rally. “Quite remarkable for a company trading on more than 28x forward earnings in a rising rates environments with supply chain issues/inflation,” he said.
Dixon also pointed to the implied volatility of the stock, which is at a discount to realized, commenting that “investors are effectively saying that it is smooth sailing going forward.”
What’s more, on Sunday Apple bagged Best Picture Oscar for “CODA,” becoming the first streaming service to win Hollywood’s top award, beating out streaming pioneer Netflix Inc.
