The record AAPL highs keep coming, with yesterday’s closing value of $180.33 the fifth time the stock has broken a new record this month alone.
AAPL Investors shows that the stock set new records on December 6, 7, 8, 10, and 27. This follows six records last month.
Based on the current number of shares (which diminishes as Apple continues its buy-back process), the magic number needed to hit a $3T valuation is $182.86. As PED30 notes, a “Santa Claus” rally could well see this happen.
From Ryan Vlastelica’s “Apple Eyes Fifth Straight Daily Gain With $3 Trillion in View” on the Bloomberg terminal:
“Apple shares rose in premarket trading on Tuesday, with the iPhone maker on track for a fifth straight positive session as it inches closer to a historic $3 trillion market valuation.
The stock rose 0.4% to $181.07 before the bell, with U.S. equity futures also positive
Based on Apple’s outstanding shares, it will achieve a $3 trillion market capitalization if the stock hits $182.86
Apple has risen for four straight sessions, ending at a record close on Monday, and it is up 6.2% over that stretch.”
My take: Not the first time $3 trillion seemed within reach. A Santa Claus rally may be just the thing to push Apple’s market cap over the line.
Investopedia explains the concept of a Santa Claus rally.
A Santa Claus rally describes a sustained increase in the stock market that occurs in the last week of December through the first two trading days in January.
There are numerous explanations for the causes of a Santa Claus rally including tax considerations, a general feeling of optimism and happiness on Wall Street, and the investing of holiday bonuses. Another theory is that some very large institutional investors, a number of which are more sophisticated and pessimistic, tend to go on vacation at this time, leaving the market to retail investors, who tend to be more bullish […]
According to the 2016 edition of the Almanac, “since 1969, the Santa Claus rally has yielded positive returns in 34 of the past 45 holiday seasons—the last five trading days of the year and the first two trading days after New Year’s. The average cumulative return over these days is 1.4%, and returns are positive in each of the seven days of the rally, on average.”
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