Apple stock reached $300.35 in after hours trading on January 2, pushing the company’s market capitalization to $1.33 trillion. This is a growth of nearly 100 percent in just 12 months following what eventually turned out to be one of Apple’s best years in the last decade.
AAPL price on December 31, 2018 was $157, while on December 31, 2019, it reached $292.
The first months of 2019 proved to be quite a challenge for Apple after the company revised its financial expectations for the first fiscal quarter of the year, mostly due to slower than anticipated sales.
Tim Cook’s announcement caused Apple stock to drop to $142.19, and many analysts predicted a tough year ahead for the first company in the world that reached $1 trillion market valuation.
New iPhones on their way
However, the new-generation iPhone, along with investments in services, have spearheaded a super-aggressive growth for the Cupertino-based tech giant, eventually pushing it to $300.35 stock price in the first two days of the new year.
In late December, Apple surpassed the $1.3 trillion market cap for the first time, with analyst Dan Ives, Wedbush Securities managing director, predicting a target price of $350 in 2020.
Now tech analyst Gene Munster says reaching $400 isn’t by any means impossible for the iPhone maker.
“This can be a $350 or $400 stock over the next year,” the analyst told CNBC. “It’s based on two factors. One is the fundamentals and second is the multiples. If you look at Apple’s valuation in the current earnings multiple, it’s still low relative to other tech companies. If you apply a Facebook multiple to Apple stock, it’s a $400 stock.”
This year’s iPhone generation is projected to propel Apple to the $400 AAPL price target, with the company to bet big on 5G for the new models. A cheaper iPhone will also launch in the spring as the second-generation iPhone SE.