Apple Inc (AAPL.O) shares surged about 3% on Friday as the iPhone manufacturer posted strong earnings and teased its metaverse ambitions, bucking a trend in technology and growth stocks that began earlier this year.
If the premarket gains hold, Apple’s stock will end an eight-day losing run as it tries to recover from what is shaping up to be its worst monthly performance since September 2020.
The world’s most valuable firm made roughly $124 billion in revenue and $34 billion in profit, demonstrating its ability to handle a worldwide supply shortage during the important holiday quarter.
“It’s worth noting that Apple is known for its supply-chain prowess and many wonder about the actions Apple has taken and will take to better position itself for this calendar year,” Third Bridge analyst Scott Kessler said.
Apple also teased its metaverse ambitions as Chief Executive Tim Cook talked of the company investing in the expansion of its library of 14,000 augmented reality apps, prompting strong investor response.
At least 11 brokerages raised their price targets for the stock, bringing the median price target to $188.5, according to Refinitiv data.
Apple’s stock has been under pressure this year from rate hike-driven tech sector selloff, which has also hit giants like Alphabet Inc (GOOGL.O) and Microsoft Corp (MSFT.O),
However, after the quarterly reports, Apple defied the trend and became one of the few gainers among the Nasdaq 100 index’s (.NDX) participants before the bell.
“There’s still a lot of anxiety about the tech sector, which is still very expensive, and the Fed’s overhang of probable future hawkish shocks,” Andrea Cicione, head of a strategy at TS Lombard, says.
