New York, Jan. 29 (BUS): Shares of Apple Inc (AAPL.O) surged nearly 7% Friday in the biggest one-day percentage jump in a year and a half after the iPhone maker reported huge results and provoked its opposite ambitions. .
The Cupertino, California, company’s earnings cut some of the losses it incurred in recent weeks during a broad sell-off in growth and technology stocks, Reuters reports.
The world’s largest company by market capitalization generated nearly $124 billion in sales and $34 billion in profits, showing its ability to weather the global supply crunch during a crucial holiday quarter. Read more
“Apple is known for its supply chain prowess and many are questioning what actions Apple has taken and will take to improve its position this calendar year,” said Scott Kessler, analyst at Third Bridge.
Apple also raised its indirect ambitions as CEO Tim Cook spoke about the company’s investment in expanding its library of 14,000 augmented reality apps, which led to a strong investor response. Read more
At least 11 brokerages raised their price targets for the stock, raising the average price target to $188.5, according to Refinitiv data. The stock closed Friday at $170.33.
With the Federal Reserve preparing to raise US interest rates, Apple shares have been under pressure this year due to a sell-off in the technology sector, which also affected giants such as Alphabet Inc (GOOGL.O) and Microsoft Corp (MSFT.O).
Following its quarterly report, Apple on Friday was the largest contributor to a rally in the S&P 500 (.SPX) and Nasdaq (.IXIC).
Apple stock is still down 4% so far in 2022.
“There is still a lot of uncertainty around the tech sector, which is still very expensive and with the Federal Reserve on hold for more potential hawkish surprises,” said Andrea Cicioni, head of strategy at TS Lombard.