Apple Inc. (NASDAQ:AAPL) stocks had a good run in July as the price surged from $409 per share in June to around $453 per share at market close yesterday. The stock has been performing not so well this year, but July was an exception. Over the past seven days, stock rose from $437 per share to $453 per share at the close of the market.
Investors seem to be optimistic as stock is gaining along with the latest iPhone 5S, which is expected to be launched soon. However, share price over the past 12 months, declined from $606 per share to $455 per share.
Apple shares rebounding
Shares of Apple Inc. (NASDAQ:AAPL) started rebounding after the company posted better than expected third quarter results. Apple, which happens to be one of the most dominating technology players in the world, sold 31.2 million iPhones in the quarter, much ahead of 26 million iPhones expected.
Additionally, the Cupertino based company also confirmed that the low priced iPhone is on its way, which will further drive share upwards.
Apple Inc. (NASDAQ:AAPL) has recently been accused of hiring minors in one of its Chinese divisions who were underpaid. Stock price may take a hit on the news, but nothing has happened so far. These sorts of accusations are nothing new for Apple and investors are confident that it will not hurt Apple’s bottom line.
Earnings also helped the stock rise
Third fiscal quarter performance was pretty stable and revenues were high compared to the previous quarter, whereas profit was down. Revenue for the third quarter came in at $35.3 billion for Apple Inc. (NASDAQ:AAPL) ahead of Wall Street expectations of $35.18 billion. The company posted a net profit of $6.9 billion, or $7.47 per diluted share.
For the fourth quarter, the Cupertino based company has given revenue guidance in the range of $34 billion and $37 billion.
Analysts at BMO capital market upgraded stocks from “Marketperform” to “Outperform” based on the gross margin guidance provided by the company. Analysts said that gross margin guidance is in line with our view that new low priced iPhone will be in the range ~$450 with around 38 percent to 40 percent gross margins.
Analysts from other research firms are expecting that apart from iPhone and low priced upcoming phones, Apple Inc. (NASDAQ:AAPL) should also launch gadgets like a iWatch and so on.