After the iPhone manufacturer’s quarterly results encouraged investors concerned about a potential recession, Apple’s stock soared nearly 5% on Friday, reaching a nine-month high and on track for its biggest one-day gain since November.
The S&P 500 and Nasdaq gained over 1.5% as the rally in Apple’s shares helped boost optimism on Wall Street. CEO Tim Cook’s results late on Thursday highlighted the resilience of corporate earnings in a quarterly reporting season that has thus far been less negative than anticipated.
“Apple Soothed The Market Because Of Its Consistency Of Execution. Tim Cook Has A Steady Hand On The Helm,” Said Jake Dollarhide, Chief Executive Officer Of Longbow Asset Management In Tulsa, Oklahoma.
“Investors In Uncertain Times Want Certainty, And Apple, As Well As Microsoft, Are As Close As You Can Get To Certainty,” Dollarhide Added.
For the quarter ending on April 1, the most valuable company in the world reported lower revenue and profits, but nevertheless outperformed analysts’ expectations. Executives predicted that the gross profit margins for the current quarter would exceed expectations since emerging markets like India had a positive impact on Apple’s results.
The market value of Apple increased by almost $100 billion to over $2.7 trillion, extending its lead over Microsoft, the second most valuable company in the world, which is valued at $2.3 trillion.
The Cupertino, California company’s shares were poised to post their largest one-day gain since November 30 as of last trading at $173.48. Last August, they were just shy of reaching a peak of almost $176.
Apple’s stock has increased by almost 40% since its January closing low and is currently trading just 4.7% below its January 2022 record high close. In contrast, the S&P 500 is still down 15% from the close of its record high in January 2022.
Following the report, at least 13 analysts increased their price targets for Apple’s stock, with the median target rising to $180 from $170 prior to the report.