Apple stock on pace with best daily winning streak since 2003
Apple CEO Tim Cook attends the 2022 Vanity Fair Oscar Party following the 94th Academy Awards at the Wallis Annenberg Center for the Performing Arts in Beverly Hills, California on March 27, 2022.
Patrick T. Fallon | AFP | Getty Images
Apple shares rose on Tuesday, putting them on track to close higher for an 11th straight day, which would mark the longest winning streak of the iPhone era.
Shares of the company were up more than 1% by midday, erasing its losses for the year. It’s still about 2.8% off its high from Jan. 3, when Apple’s market capitalization hit $3 trillion during the day. As of Tuesday, Apple was worth around $2.9 trillion.
The last time Apple shares gained for at least 11 consecutive days was a 12-day streak in 2003, when the company’s fastest-growing product was the iPod music player. The first iPhone only hit the market in 2007.
Apple’s rally comes with a broader market gain as investors grow more optimistic about ceasefire talks between Russia and Ukraine. Apple’s Big Tech peers also gained on Tuesday, as Meta, Amazon, Netflix and Alphabet all advanced.
“Apple is a bedrock of strength and overall demand for iPhones and services is helping the stock back toward the $3 trillion area code,” Wedbush Securities analyst Dan Ives wrote in an email.
While much of the high-growth tech has been hammered this year, big, established names have generally held up better than emerging and losing companies. With inflation rising at the fastest rate in 40 years and the Federal Reserve raising interest rates, investors are putting their money into less risky assets.
“Once the Fed started its rate hike, it was a strong green light to hold tech stocks,” said Ives, who recommends buying Apple stocks. “Many investors were caught off guard by this rally and are now catching up to Cupertino in the foreground.”
Apple even faced some tough news this week, as Nikkei Asia reported that the company was cutting production of its new budget iPhone SE due to weaker-than-expected demand. Apple’s leadership has proven its ability to navigate choppy waters.
“Tim Cook continues to execute with his team,” Bryn Talkington of Requisite Capital Management told CNBC on Friday. “I’d be surprised if Apple didn’t continue to execute. It’s done very well, it’s held up much better than the vast majority of tech stocks, so I think it’s going to continue that way.”
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