Apples market capitalization has returned to the first place in the world. Why crush Microsoft?

category:Finance
 Apples market capitalization has returned to the first place in the world. Why crush Microsoft?


New record

Return to the First Big Company in Market Value

Last night, Apple shares closed up 2.66% at $236.21, a record high. In the fourth quarter of 2018, Apples share price was weak due to fears of sluggish demand for the iPhone, which seems to have eased in the near future.

Apples share price has jumped high and high in recent weeks, up 60% from its January low.

Apple closed at $1067.5 billion as share prices rose, while Microsoft slightly rose 0.42% to $139.68 last night, with a market value of $106.65 billion. The iPhone maker surpassed Microsoft in market capitalization in 2010 and remained in the top position until the end of last year. It took 10 months to push Microsoft down again to become the worlds most valuable company.

Market demand exceeding expectations boosts stock prices

For Apple, they probably didnt realize that their successive market capitalization was driven by the iPhone 11.

Since October 5, Apples market value has again exceeded the $1 trillion threshold. According to foreign media reports, the stock price continued to rise mainly due to market demand exceeding expectations, prompting Apple to increase the production of the 11 series of mobile phones by 10%. According to Nikkei Asia Review, Apple told its suppliers to increase the production of the latest iPhone 11 series by up to 10% to meet better-than-expected sales.

Nikkei News quoted anonymous sources as saying that the increase in production would increase Apples initial planned production by 7 million to 8 million mobile phones. Meanwhile, Apple CEO Tim Cook said in an interview that he was quite satisfied with the recent release of the iPhone 11: The sales of the iPhone 11 seem to have had avery strong start. Although no specific sales figures were disclosed, Cook said the market performance of the iPhone 11 was very happy.

In terms of demand, some analysts predict that Apple will ship 1 million more iPhones in the third quarter than previously expected, and 3 million more in the fourth quarter than previously expected. Analysts are increasingly optimistic, and JPMorgan Chase analysts are optimistic about sales of the new iPhone in their analysis report, saying that sales of the 11 series will exceed previous estimates by 1 million units this quarter. The bank gave Apple stock an overweight rating and raised its target price to $265 from $243 per share. In addition, analysts also believe that Apples 5G phones, which are likely to be launched next year, will sell well.

Apples share price has changed a lot since it hit a high a year ago. Apple is transforming into a service-oriented company, launching streaming video services, breaking into the video game market and issuing credit cards. In addition, the pricing of new equipment is cheaper than in the past. Daniel Ives, an analyst at Wade Bush Securities, raised Apples target price from $245 to $265. He said he was more confident about the companys streaming plans before the official launch of AppleTV + on November 1. Given Apples global presence of about 900 million active iPhone users and the low price of $499 a month for streaming TV services, Ives said he believed Apple had a chance to reach 100 million streaming consumers in the next three to four years.

On March 30th, Apple will release its latest financial report. According to previous forecasts, its net revenue in the third quarter was $53.809 billion, up 1% from $53.265 billion in the same period last year, and its net profit was $10.444 billion, down 13% from $11.519 billion in the same period last year.

U.S. technology stocks soared last night

Last night, investorsconfidence was boosted by good trade news between China and the United States. The three major stock indexes closed higher, with the Dow Jones Industrial Average rising more than 500 points. The Dow Jones Industrial Average rose 1.21% to 26816.59 at 04:00 Beijing time on October 12, the Nasdaq Composite Index rose 1.34% to 8057.04, and the S&P 500 index rose 1.09% to 2970.27.

Among them, technology stocks rose. In addition to Apples 2.66% gain, Amazons 0.68%, Alphabet, Netflixs 0.87%, Facebooks 2.31% gain and Microsofts 0.42%. Popular stocks rose collectively. Alibaba rose 4.14%, Sohu 1.83%, Sina 1.92%, Jingdong 3.95%, Aiqiyi 4.77%, Baidu 0.78%, Netease 3.80%, Pingduo 2.88%, Ruiyun 2.55%, Baiji Shenzhou 2.49%.

Source: Yang Bin_NF4368, Responsible Editor of China Foundation Newspaper