On Monday (Aug. 10), Apple moved relentlessly closer to becoming the first public company on the planet with a $2 trillion valuation – though whether the tech giant’s stock price can maintain its current blistering pace is being debated by industry analysts.
Shares of Apple edged up 1.16 percent to $449.61 on Monday, edging closer to the $467.77-a-share price needed to hit the $2 trillion mark.
The continued upward momentum in Apple’s stock price comes after a remarkable spring and summer, with the tech giant’s valuation having shot up by more than $900 million since the end of March, when coronavirus lockdown measures sent the economy into a tailspin.
Apple’s financial results have also been impressive, beating analyst estimates for second-quarter revenue with a surge of iPhone sales.
Wedbush Securities Analyst Daniel Ives issued a resoundingly bullish take on Apple in a research note on Sunday (Aug. 9) that set a price target of $515 a share and a “bull-case” scenario of $600 a share, Business Insider reported.
The Wedbush analyst sees a big jump ahead for iPhone sales, citing Apple’s pending release in October of the new iPhone 12.
With the release of the phone, which is likely to be available only in 5G models, Apple stands poised to rise on an emerging “5G super cycle,” Ives wrote.
Wedbush also estimates that a large portion of Apple’s iPhone user base is due for an upgrade – as many as 350 million out of a total of one billion.
"We still believe many on [Wall] Street are underestimating the massive pent-up demand around this super cycle for Apple, which remains the opportunity for the bulls," Ives told Business Insider.
However, other analysts are questioning how much gas remains in Apple’s tank after the recent, epic surge in its stock price.
While Deutsche Bank on Monday (Aug. 10) reiterated its buy rating, Analyst Jeriel Ong pointed to several factors “that give us pause for [the] magnitude and speed of the rise,” according to Bloomberg.
Meanwhile, Bank of America analysts lowered their rating on Apple’s stock last week, arguing that the rocket-like rise of Apple’s stock price is not “sustainable in the near term.”