Apple’s Path to $350 Revealed
There is a trend in tech. Maybe you’ve noticed it.
Tech is a status symbol. A defining indicator of your lot in life.
All the celebs have the coolest new gadgets. They have the coolest new cars with the most advanced features.
We regular folks strive to get a taste of the same.
Sports fans like me, for example, always make sure we have a good TV. And by good I mean a 50-inch (or more) 4K flat-screen with in-deck Wi-Fi and Bluetooth.
A setup like that is a must if you want people to “check in” to your Super Bowl party via Facebook.
If you’re fashion focused, you probably have an Apple Watch or some other high-end wearable.
And it’s this trend of tech as a symbol of stature that has helped Apple (NASDAQ: AAPL) crush Wall Street’s estimates again.
First the Numbers
Apple reported quarterly revenue of $64 billion, which is a 2% increase from the year-ago quarter. Quarterly earnings were up 4% to $3.03 per share. Apple additionally reported international sales accounted for 60% of Q3 rev.
Interesting stat considering the kick-the-can trade war.
Q1 guidance for Apple’s fiscal year 2020, as noted in the call transcript:
- Revenue between $85.5 billion and $89.5 billion
- An estimated gross margin between 37.5% and 38.5%
- Operating expenses between $9.6 billion and $9.8 billion.
But what really impressed the Street were Apple’s huge gains in wearables and services, hence why we are hinging on the idea today that Apple is something more than just a hardware and software company.
Having the best tech that’s aesthetically designed is more about status than functionality.
And this means big things for Apple.
AAPL in 2020
Shares were up nearly 2% pre-market, but there is every reason to believe Apple could gain in the coming months and years.
You see, Apple is not just a tech company anymore. They are also a service company, and along with their domination in wearables this means a lot more growth in the future.
We know wearables are the next big trend. But Google glasses are for nerds and technophiles.
Apple Glasses by Cartier are something that folks will wait in line for days for.
And don’t sleep on iPhone sales either. Despite a downtick, the Apple fandom is alive and well. Especially in Asia. My colleague told me the other day that as he toured Japan’s Ginza district… there was a line of folks reaching around the entire city block waiting to buy the new iPhone 11.
A trade war resolution and Asia’s love affair with Apple products could send shares soaring.
Plus, 5G is on the way and Apple’s going to profit significantly when these new networks go mainstream.
And of course, wearables will continue to grow at a faster and faster rate. Throw in the mix of services like the well-received Apple Music platform and Apple TV at $4.99 a month and it’s clear.
Apple is much more than just a tech company today.
Bold prediction: Apple will hit $350 per share by the summer of 2020.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily