Apple Inc. (NASDAQ:AAPL) shares shot up Wednesday following the news of a partnership with International Business Machine (IBM). However, the shares respected the $100 resistance and traded within the range closing down 54 cents or 0.6% to $94.78. Shares are trading near $100 mark.
The significance of $100 remains as it is very near to all-time high of the stock, which is split-adjusted $100.70 on September 21, 2012, according to S&P Capital IQ.
Many value investors have given up on their strategy over the last 15 years amid concerns that value investing no longer worked. However, some made small adjustments to their strategy but remained value investors to the core. Now all of the value investors who held fast to their investment philosophy are being rewarded as value Read More
Catalysts that could take Apple over $100
Year to date, shares of the iPhone maker superseded Standard & Poor 500 gain of 7.2%, surging 19.3%. Investors are expecting some new and exciting products from the company this year. Sales of tablet are gradually declining with iPad being present in the market from a long time. In the smartphone segment, the company is seeking to grow its market share by allegedly launching larger-screen iPhone in competition to Samsung and Nokia. Additionally, there could be a wearable device, most probably a watch.
Also, the MarketWatch contributor Jeff Reeves noted few reasons why Apple share would move higher. Reeves stated that the company is back on the track, and the stock has surged more than 30% in just three months, dominating its 50 days moving average. Also, Reeves thinks that Apple’s venture into enterprise is a profitable bet for the company. Emerging markets like China are core areas of growth for the company even though Apple did not compromise with the price tag for these markets. Other factors that will boost share price are repurchase plan, increase in dividends and shift of investors to a high-quality stock from risky momentum stocks.
Investor’s trust point
The Research firm Counterpoint revealed some data that would instill more confidence in the Apple investors. The firm noted that Apple iPhone 5S have beaten Samsung Galaxy S5 in terms of sales, even though Galaxy S5 was launched after Apple iPhone 5S. According to the reports from The Telegraph, Apple shipped 7 million iPhone 5S handsets worldwide in the month of May sold compared to 5 million Galaxy S5 units in the same month. The research firm noted that Apple smartphone sales are strong even though the expected release date of the iPhone 6 is nearing.
Apple is due to release its earnings next week. Analysts at Citigroup have assigned a price target of $110 per share and gave Buy rating to the stock.