If you’ve been watching the Wealth365 Strength Index on the Wealth365.com homepage, you know that Apple fired off excellent signals as it pulled out of the 150 ranking and quickly rose above the 240 area, a bullish move. From there it went and looked at its maximum value and has been on a tear for several days since. What did the market know for a while that made them want to accumulate so aggressively?
Well, now we know the answer, that Apple announced this week that they are coming out with a new iPad Air, iPad Mini, and the second generation of their wireless AirPods, Apple’s most popular set of headphones. The new AirPods will have a wireless charging case, longer battery life, and voice control that will enable users to say “Hey Siri,” to access Siri to make phone calls or open apps, like iTunes.
The new AirPod cases allow users to access wireless charging, which the first generation of AirPods didn’t have. However, the new wireless charging cases are compatible with the first generation of AirPods. The new fully charged AirPods can last for up to 24 hours. Apple also is using a new H1 Chip in its second generation AirPods that is going to improve iPhone connectivity. The AirPods with the charging case will retail for $199, the AirPods alone will cost $169, and the charging case will be available for $79.00.
Apple shares are rallying this morning on news that they will add the Wall Street Journal to its streaming service and also an upgrade and price target raise from Needham. The investment bank and financial research firm upgraded Apple to “strong buy” from “buy.” Needham also raised its price target by nearly 20% on Apple to $225.00 from $180.00. (Wedbush also reiterated their outperform rating with a $215.00 price target)
Apple’s Stock reached an all-time high of 233.47 on October 3rd, 2018. At that time, Apple was the largest company in the world valued at over $1 trillion dollars. After that peak, the stock retreated back to reasonable valuations, pulling back nearly 40% to just under $150.00. Apple shares took off to a great start in 2019, rallying off of its 2018 lows, charging 33% higher and putting in a string of positive weeks in a row.
In early March of 2019, Apple broke above its downtrend from 2018 and crossed above the 100-day Moving Average right around the $175.00 price level and continued to rally more than 11%. Apple opened today and surged above its 200-day above moving average above $190.00, leaving very little technical resistance left ahead.
(Chart above courtesy of www.tipranks.com)
Based on a survey of 37 analysts across Wallstreet, the average price target for Apple’s stock is $183.26. Based on that number, the stock is priced at a premium relative to Wallstreet’s analysts and could be considered overvalued around current levels near 195.90.
Early next week Apple is expected to announce news about a new streaming TV service. Similar to Needham and Wedbush, analysts may be reevaluating apple with its promising new additions to its already valuable ecosystem. As you can see with all of the new and exciting products coming to the market, the future seems bright for Apple investors. We’ll also be watching the Wealth365 Wealth Strength Index at Wealth365.com for more clues as well.