Apple Stock At 52-Week High: But Is The Rally Sustainable In The Long-Term?
Portfolio Pulse from Surbhi Jain
Apple Inc (NASDAQ:AAPL) stock hit a new 52-week high at $199.62 on Dec. 14, closing at $198.11. The stock has risen 58.40% this year, with technical indicators like the Golden Cross suggesting a short-term bullish trend. However, the RSI is nearing overbought territory, signaling potential near-term correction. Apple's App Store revenue, a significant part of its earnings, faces risks due to antitrust rulings and investigations, as highlighted by Epic Games' recent win against Google. Apple's P/E ratio is higher than the sector median and its peers, including Dell Technologies Inc (NYSE:DELL), HP Inc (NYSE:HPQ), and Hewlett Packard Enterprise Co (NYSE:HPE).
December 15, 2023 | 1:35 pm
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NEGATIVE IMPACT
Alphabet faces antitrust challenges as evidenced by Epic Games' recent win, which could also impact investor sentiment towards Google.
The antitrust ruling against Google could lead to increased scrutiny and potential changes in revenue models, affecting short-term stock performance.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 70
NEGATIVE IMPACT
Alphabet faces similar antitrust challenges as its counterpart GOOG, with potential implications for its stock performance.
The antitrust ruling against Google's parent company Alphabet could lead to increased scrutiny and potential changes in revenue models, affecting short-term stock performance.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 70
NEUTRAL IMPACT
Apple's stock is at a 52-week high with a bullish short-term outlook, but faces potential near-term correction and long-term risks from antitrust scrutiny.
While technical indicators are currently positive, the RSI nearing overbought levels could lead to a short-term price dip. Long-term sustainability is questionable due to antitrust issues and high P/E ratio compared to peers.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Dell's P/E ratio is significantly lower than Apple's, which may attract investors looking for value in the technology sector.
Dell's lower P/E ratio compared to Apple's might be seen as a value opportunity by investors, especially if Apple's stock faces downward pressure.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Hewlett Packard Enterprise's P/E ratio is much lower than Apple's, which could draw investor attention in the context of Apple's high valuation.
Hewlett Packard Enterprise's lower P/E ratio may be seen as a value play by investors, particularly if Apple's valuation is deemed too high and faces a correction.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
HP Inc's lower P/E ratio compared to Apple's may become more appealing to investors if Apple's stock faces a correction.
HP Inc's lower P/E ratio might attract investors if they perceive Apple's stock as overvalued, especially in the face of potential near-term corrections.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50