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Why Apple Stock Keeps Surging

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Apple’s $1.1 trillion valuation

Apple (AAPL) stock has risen 3% already in the first three days of October. It made another all-time high of $233.50. Apple now has a market capitalization of $1.12 trillion.

It reached the lofty milestone of $1 trillion in August. In two months, it has added a whopping $120 billion in valuation, which is higher than the total market cap of most S&P 500 companies.

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Apple’s new iPhones have done better than expected

Analysts have been buoyed by the strong demand for Apple’s new flagship phones, the iPhone XS and the iPhone XS Max. Apple’s latest smartwatch, the Apple Watch Series 4, has received fantastic reviews.

Apple’s Services division, which is expected by many to be the engine of Apple’s growth in the future, could get a boost.

Goldman Sachs analyst Rod Hall has estimated that the amount Alphabet’s (GOOG) Google pays Apple to make Google its default search engine in Safari will rise from $9 billion in 2018 to $12 billion in 2019.

The stock is backed by Warren Buffett and is still rather cheap compared to its FAANG[1. Facebook, Apple, Amazon, Netflix, Google] peers.

In the last few quarters, Apple stock has surged each time it announced its quarterly earnings. It’s expected to announce its fiscal 2018 fourth-quarter earnings[2. The fourth quarter of fiscal 2018 ended in September 2018.] on November 1.

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