Why Did Apple Stock Soar On Monday?

Why Did Apple Stock Soar On Monday?

Tech Highlights:

  • Well dressed person in an office looking at a smartphone. Well-known Apple analyst Ming-Chi Kuo suggested that the tech giant plans to release the latest version of its HomePod smart speaker near the end of 2022. The company has lagged rivals in the smart speaker market, but could eventually take market share if it can crack the code regarding utility, design, and price point. Previous rumors suggested that Apple was working on devices with viewing screens and cameras, though these reports are, as yet, unconfirmed.

  • Apple (AAPL 4.01 percent) stock soared 4.1 percent higher on Monday. The stock was up 3.1 percent as of 12:57 p.m. ET. Several stories that were excellent news for Apple stockholders were the triggers that propelled shares higher. According to The Wall Street Journal, an article published over the weekend said that Apple is aiming to expand its manufacturing outside of China. Apple’s strong dependence on China to construct its popular electrical gadgets has long been criticised, and many say it is the company’s Achilles’ heel. Among other things, the paper noted China’s “Zero-COVID” strategy. Apple already has manufacturing plants in Vietnam and India, which might see a larger portion of Apple’s device quotas in the future. Alternative facilities would undoubtedly benefit Apple.

Finally, UBS analyst David Vogt reported that a recent survey of 7,000 smartphone users suggests that demand for the iPhone is rising in China, with purchase intent up 6% year over year, marking its highest level in six years, according to the UBS Evidence Lab. The iPhone 13 is taking share from Chinese smartphone providers. The news was mixed, however, as purchase intent in the U.S. is down 4%. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year. Apple stock has slumped 22% so far this year, dragged down by the bear market, inflation, and the specter of a recession hanging overhead. These fears stand in stark contrast to the company’s fiscal second-quarter results, as Apple posted record revenue for the quarter that ended March 26. The results were fueled by an all-time revenue record from its services segment and second-quarter revenue records for the iPhone, Mac, and wearables, home, and accessories segments.

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