Can Apple Stock Continue Its Stellar Run in 2019?


Apr. 10 2019, Published 7:05 a.m. ET

Stock returns

Apple (AAPL) stock is up over 26% in 2019. The stock is currently trading 40% above its 52-week low of $142 and 14.5% below its 52-week high of $233.47. Last year, Apple lost 12.5%. However, the stock has generated absolute returns of 163% in the last five years. It was the first publicly traded company to reach a trillion dollar valuation in terms of market cap last year.

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Revenue estimated to fall 4% in fiscal 2019

Analysts expect Apple’s revenue to fall 4% year-over-year in fiscal 2019, which ended in September. The sales are then expected to rise by 4.4% to $266.23 billion in 2020 and by 4.5% to $278 billion in 2021.

Apple stock has been impacted by the ongoing trade war as well as concerns over its iPhone growth, which is Apple’s flagship product. Apple will likely find it difficult to drive iPhone sales, as the global smartphone market is now saturated. Apple products are priced at a premium and this will impact demand from high growth emerging markets.

Apple is also struggling with declining sales in China (FXI) and is banking on its high growth Services business to offset these weaknesses. Last month, Apple announced the expansion of its Services business and launched four new verticals: Apple TV+, Apple News+, Apple Arcade, and Apple Card.

The trade tensions between China and the United States might also escalate and impact Apple’s stock negatively in the short term. For now, investors will keep a close eye on Apple’s performance in the last quarter and the company’s outlook for the rest of 2019.


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