No worms for Apple investors
Apple's stock is soaring as the tech giant gets set to unveil a slew of new products and features at WWDC.
Apple is holding its latest Worldwide Developers Conference Monday. Expectations are, to put it mildly, sky high.
Apple shares rallied before the event, hitting a new all-time high in the process. Apple’s stock is now up more than 40% this year and the company is inching closer to a whopping $3 trillion market cap.
The company is expected to unveil its latest iOS update, new Macs and..most promisingly…an augmented reality/virtual reality headset.
Apple may be a little late to the AR/VR game. But Apple didn’t invent the smartphone either. So it will be interesting to see if Apple has learned from some of the mistakes made by Snapchat, Google/Alphabet, Microsoft, Meta/Facebook and others and is able to make AR/VR as ubiquitous and user friendly as it did with the iPhone and mobile devices.
So will Apple’s stock continue to rally after WWDC is over? That remains to be seen, But investors are clearly betting on steady sales, earnings and dividend growth ahead to propel the shares.
Apple needs to live up to the hype. The stock isn’t exactly cheap, trading at about 28 times earnings estimates for its next fiscal year. But Wall Street (and Warren Buffett) remain among the iFaithful. 32 of the 38 analysts covering Apple have a “buy” rating on it. And Apple is the largest holding for the Oracle of Omaha’s Berkshire Hathaway. Berkshire has a nearly 6% stake in Apple.