To The Moon

• Apple $Apple(AAPL)$ stock is currently trading at $191.29, only 3.44% lower than its all-time high of $198.11.

• Apple stock has climbed 12.46% so far this month, on pace to have its best month since July 2022.

• The stock may continue its uptrend momentum heading into WWDC.

• Apple will host WWDC from June 10-14, and it is widely expected that Apple will launch practical AI functions and announce a partnership with OpenAI during the event.

• Approximately 1.46 billion people worldwide use iPhones. I reckon AI-enabled phones will drive a multiyear upgrade cycle, similar to the significant improvements seen with the introduction of smartphones.

Why Should You Be Optimistic About Apple Stock Heading into WWDC?

1) Historical Performance During WWDC:

Positive Returns: 6 out of 10 times during WWDC event week, Apple stock has provided positive returns.

Average Return: The average return during WWDC event week is -0.09%.

Median Return: The median return during WWDC event week is +0.39%.

2) Performance Leading Up to WWDC:

Positive Returns: 7 out of 10 times in the week prior to WWDC event week, Apple stock has provided positive returns.

Average Return: The average return one week prior to WWDC is +0.72%.

Median Return: The median return one week prior to WWDC is +0.98%.

These historical trends suggest a favorable outlook for Apple stock heading into WWDC.

Source: Bloomberg, Tiger Brokers

 Conclusion:

• Based on Bloomberg analysts' consensus, the 12-month target price for Apple is $205.06, representing an upside potential of 7.2% relative to yesterday’s closing price.

• Technical analysis indicates that the resistance levels based on Fibonacci Extensions are $197.69, $214.68, and $236.33. Apple stock also looks poised to break above its upper parallel trend line based on a flag pattern and continue its uptrend momentum.

• I reckon Apple stock will play catch-up in performance with the rest of the Magnificent Seven.

• Despite the recent rally, Apple is still the second worst-performing stock among the Magnificent Seven year-to-date. Apple has returned -0.38%, compared to Nvidia $NVIDIA Corp(NVDA)$ ’s 123%, Meta $Meta Platforms, Inc.(META)$ ’s 32%, Alphabet-Class A $Alphabet(GOOGL)$ ’s 23%, Amazon $Amazon.com(AMZN)$ ’s 18%, and Microsoft’s 10%.

Source: Bloomberg, 30 May 2024

Source: Tradingview, Tiger Brokers