Apple’s stock has breached the $200 mark again
Apple (AAPL) stock continued on its stellar run on Monday, April 8, even though broader markets were treading water. The tech behemoth’s stock rose 1.57% on Monday, breaching the $200 mark, a five-month high. Apple is now only 2% away from regaining its trillion dollar market cap.
Microsoft (MSFT) had held the position of the most valuable company by market cap for most of this year. However, Apple’s 28.1% YTD gain has led it to leapfrog Microsoft to the top spot. In comparison, Microsoft has gained 18.5% YTD, while the broad S&P 500 Index (SPY) has climbed 16.5% YTD.
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Why Apple may not reach its all-time high in the short term
However, Apple’s stock is not close to the all-time high of $233.5 it reached in October last year, which is 16.7% higher than its current price. In the short term at least, the stock might find it difficult to reach those peaks again.
Apple’s main issue of shrinking iPhone volumes might have hurt the stock in the March-ended quarter as well. Meanwhile, revenue from the services segment, which was touted to be the company’s next key growth driver, has shown signs of slowing down in the previous few quarters.
According to Morgan Stanley, Apple’s cut from entertainment apps, a part of its revenue from the App Store, slowed down drastically in March.
However, the slowing service revenue growth may be short-lived. Apple recently unveiled a number of new services that would boost its revenue in the coming years.