Apple has confirmed that it will hold its “Spring Loaded” event on April 20. Markets are speculating on several updates from the Cupertino-based company during the event, which will be its first event for the year. Is Apple stock expected to rise after the event and what could the company reveal during the event?
Apple stock is up only 1.4 percent in 2021 and is underperforming the Nasdaq Composite Index. The stock is down 7.3 percent from its 52-week highs.
Apple "Spring Loaded" event rumors
There are plenty of rumors floating around about what Apple might announce at the widely waited event. According to The Verge, the company might update its Apple TV, which was last updated four years ago. It also expects an update to the new iPad Pros with a new chip that would help boost the speed. The Verge also speculates that the event might feature the AirTags.
AirTags is a tracking device that Apple was expected to reveal alongside the launch of the latest iPhone at the October 2020 event. The event, which is usually held in September and helps Apple prop up its fiscal year-end revenues, was postponed due to the COVID-19 pandemic.
Many people are speculating that Apple might reveal a new Pencil at the event. There are also speculations that the company would announce a foldable phone at the event.
Mark Gurman doesn't expect much from the April 20 event.
Meanwhile, Mark Gurman of Bloomberg is honest about the April 20 event and doesn't expect anything "particularly innovative" or "extraordinary.” Gurman expects Apple to launch a new iPad Pro with an 11-inch and 12.9-inch option. There have been reports that Apple plans to postpone the production of some of its products like iPads and Macs due to the global chip shortage.
Apple’s earnings are also due
Apple is expected to report its quarterly earnings later this month. The previous quarter was a record for the company. The delayed iPhone 12 launch helped Apple increase its revenues in the quarter. Wall Street analysts have been getting optimistic about the company’s earnings.
JPMorgan Chase has lifted its revenue forecast for Apple. Evercore analyst Amit Daryanani expects the iPhone maker to report better-than-expected earnings in the quarter.
Gene Munster expects Apple to outperform.
Gene Munster of Loup Ventures expects Apple to be the best-performing stock in the FAANG pack in 2021. Apple outperformed FAANGs in 2019 and 2020 and it's the largest holding in Berkshire Hathaway’s portfolio. Munster expects Apple’s market capitalization to rise above $3 trillion. It's already the world’s largest company and the only one with a market capitalization above $2 trillion.
Apple stock should rise after the "Spring Loaded" event.
So far, Apple stock is underperforming in 2021. However, the "Spring Loaded" event could help the company lift the sentiments. Apple events, like Tesla events, attract a lot of investor interest. Usually, neither of the companies disappoints at these events.
Looking at the iPhone supercycle and Apple’s expected foray into electric vehicles, I'm positive on the stock in the medium to long term. While the sentiments have been muted around Apple stock for some time, the April 20 event is an opportunity for the company to turn the tide.
Based on the low expectations that markets seem to have from the event, I would expect Apple stock to rise after the "Spring Loaded" event on April 20.