As Apple gets set to unveil new iPhone models, shares hit an all-time high

As Apple gets set to unveil new iPhone models, shares hit an all-time high
It was quite an eventful month of August for Apple in terms of its shares. On August 2nd, the tech giant became the first U.S. public company to earn a valuation of one trillion dollars. Some expected Apple to roll over and play dead after hitting the magic figure, but that wasn't the case at all. Since making history, Apple's shares rose another 10% to finish the month of August at $227.63 for a valuation of close to $1.1 trillion. An all time high of $228.87 was hit on Friday, the last day of the month.

Some traders have been buying the stock in anticipation of Apple's September 12th new product event being held at the Steve Jobs Theater. Typically, the shares rise in anticipation of the introduction of the latest iPhone models. Nimble traders then sell their shares or call options as soon as the new phones are announced, scoring a quick profit. That's known as buying the rumor and selling the news. But that's not the play that famed long-term investor Warren Buffet has in mind.

Buffet has been continually adding to his Apple position, even earlier this year when analysts falsely said that the iPhone X was deadWith Wall Street traders in "full panic mode" just before the fiscal second quarter earnings announcement, Apple's shares briefly dipped 8% within days. But the following two earnings reports indicated that the tenth anniversary iPhone had actually been Apple's biggest seller. The "Oracle of Omaha" usually is averse to investing in tech, but he has doubled his stake in Apple since 2017. He reportedly started building his position in the stock after falling in love with his Apple iPad.

Buffet's holding company, Berkshire Hathaway, is the second largest holder in Apple with ownership of 246.5 million shares at the end of June. Those shares are currently valued at over $56 billion. Mutual fund company Vanguard has the largest stake in Apple.

source: AppleInsider

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8 Comments

1. GreenMan

Posts: 2697; Member since: Nov 09, 2015

Profitable yes; but innovative? Come-on; it's profitable, who cares about innovation? I don't see Apple going anywhere; as long as it could maintain its cult following and keep little cultists happy. Simple gullible people with deep pockets; otherwise known as Americans. America is called 'the land of opportunity'. Now, what exactly is the 'opportunity'? The people, what else? Now, my post may sound like something full of stereotypes but think about it for a moment with an open mind... And while you're at it, remember: Donald Trump; the reality show guy; is the president of the land of opportunity. I'm sure you'll find this reference helpful. G'Day!

3. androtaku

Posts: 246; Member since: Dec 12, 2013

wow...we are hitting level of butthurt that shouldn't even be possible

6. midan

Posts: 2597; Member since: Oct 09, 2017

Well said :D

4. L0n3n1nja

Posts: 1527; Member since: Jul 12, 2016

I have a feeling it won't be long until it drops some again. It seems like the jump in stock price is a result of demand for the stock because the company hit a trillion, a temporary bubble if you will. No I'm not saying it will plummet, just lose a few percentage points before slowly climbing back up and probably reaching new highs in no time.

5. mootu

Posts: 1449; Member since: Mar 16, 2017

It's not down to performance, but it is due to Apples share buyback program. Apple is buying back stock left right and centre, by the end of the year they will have spent $100 billion on the buy back. Doing this keeps the share price artificialy high and gives shareholders a higher dividend due to being less shares available. Tim Crook has essentialy just given himself a huge pay rise this year.

7. Well-Manicured-Man

Posts: 664; Member since: Jun 16, 2015

I think it will all depend on Apple’s product roadmap. Especially on the Apple Watch in combination with healthcare features. I believe the opportunities and money one can make in health care in the future are basically unlimited. We are just at the beginning of digitalization of healthcare. Imagine what you can do with great software and hardware in the healthcare business. I think this is also the reason why apple is building a hospital for its employees. Apple wants to learn and develop respective products.

8. MarvzIsFallen

Posts: 646; Member since: Aug 11, 2017

 is innovative in its every way. Many  users do not think there’s other competition because talking about apps store, post services, apple stores, hardware and software integration, apple devices and everything about  is superb and top notch. As  user we are glad that everyyear theirs something new to us and we don’t care if android had them for years. Apple for the win. Too many butthurt android because their phone think superior for a cheap price due to difficulty in selling.  users think of years that their phone will lasts and will get updates. Unlike butthurt android, only 2 years is good enough. So that they can buy another garbage phones. While  users upgrade everywhere and sell their old devices to android people.

9. darkkjedii

Posts: 30903; Member since: Feb 05, 2011

Can't hate on Apple for getting that money.

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