Two decades ago, Apple was in a difficult situation. By 1997, the losses of the company amounted to $1.86 billion But the situation changed with the return of Steve jobs, left their offspring in 1985. And 2 August 2018, Apple became the first American company whose market capitalization exceeded $1 trillion.
At the end of trading on Thursday, shares of the company increased from $201,5 to $207,39. Total for the current year prices of the shares of technology giant increased by 22%.
A helping hand
In late July — early August traditionally, the company’s report on the financial results for the last quarter. Due to the dramatic fall of the stock Facebook after reporting all the analysts drew attention to other high-tech corporations FAANG (abbreviation of the names of the top five high-tech companies — Facebook, Apple, Amazon, Netflix, Google).
While Netflix anticipated the collapse of Facebook: after the publication of the financial statements 16 July the company’s shares fell by around 14%.
Investors reacted calmly to this story. But then Facebook has disappointed analysts with its reporting for the second quarter of 2018 and projections of the company’s management on slowing its growth. In the end, stocks fell by about 20% — from $217,5 to $173 per share. During the week they began to recover, but growth is still insignificant.
After Facebook was followed by another social network — Twitter, published July 27 its financial results. Paper microblogging service has fallen off then by 20.54% from $42,94 to $34,12 per share. And all week they continued to decrease — at the end of trading Thursday, 2 August, their price was $32,82.
Shares Of Google Inc. — parent company Google have lost a week for about 4% of the cost.
The online retailer, Amazon, also does not remain aloof from declining trends. The company published record accounts for the history of its activities — the quarterly profit amounted to $2.5 billion, while revenues from $37,96 billion a year earlier rose to $52,89 billion But that was still below analysts ‘ expectations, so the shares, on the contrary, lost after the publication of the statements. Although last week the company’s securities have recovered and are once again showing growth.
“The market for high-tech companies heated strongly enough — they are expensive. You can safely assume that the market is inflated “a bubble”. So at the slightest fears of investors that the financial plans and forecasts may not come true, the collapse of the stock,” explained group Finam analyst Leonid Delitsyn. Therefore, according to him, many analysts had high hopes for Apple — if its reporting is high, it will pull a Facebook and all the rest back.
“I think this spectacular event exceeded capitalization of $1 trillion will give impetus to the high-tech and soothe the situation for another quarter or two,” — said the expert.
However, the analyst TelecomDaily Ilya Shatilin finds record levels of success only by Apple, which should not be linked with other high-tech companies.
However, shares of Facebook 2 Aug increased from $171,65 to $176,37 per share.
The success of the iPhone X and the hopes of the investors
Apple in the second quarter of 2018 (at the third reporting in the USA approx. Basereporter.com) surpassed investors ‘ expectations, earning $53,26 billion According to the company, this indicator became the best for April — June for all time. Profit totaled $11,52 billion.
The answer to the question about the success of Apple and unambiguous on the surface, the General Director of the company INOI Sergei Bogatov. “It’s all about the cost of Apple products. In its price range it has no rivals, and probably this trend will continue in the near future”, — explained the expert.
Although the American Corporation the number of smartphones sold lost to South Korea’s Samsung and China’s Huawei and dropped to third place in the world, the price of the flagship iPhone X allowed it to maintain its leading position in terms of revenue. Here it was overtaken by Samsung only with the rate of 14.87 trillion KRW, or about $13.3 billion.
The average cost of iPhone in retail over the past year increased by 20% — from $606 to $724, which is an increase in the number of sales of the flagship iPhone X, the starting price of the base model which is $999. Thus, according to the research, Apple products sales in the United States are leading iPhone 8 and iPhone 8 Plus.
Editor of the Internet portal “Mobile telecommunications” Leontiy Buckstein noted the success of the iPhone X, especially after the relatively cool reception the previous models. Besides, according to the expert, Apple will start charging interest before the autumn release of new products. “In addition, the financial success of the company is strongly tied to the psychology of the user. He offered a “special” product, which he perceives as part of the image,” — said the expert.
Leonid Delitsyn said that Apple is relatively inexpensive the company — its market capitalization is about four of its annual revenue. In 2017, the Corporation earned $229,23 billion that’s Why when a successful company makes a product understandable and demonstrates a higher than expected, this supports the interest of investors.
Besides Apple to trillion-dollar milestone close, two other companies from FAANG — Amazon a market capitalization of c $870 billion, and Google (Google) with a market capitalization of $850 billion.
Ilya Shatilin noted that the future of 5G technologies, which will allow greater use of services augmented reality, remote control of appliances, the Internet of things, telemedicine. All this is being implemented, but people still do not understand, and therefore are not willing to pay. Who was the first to be able to monetize emerging technologies, he will be a leader, explained the expert.
Leonid Delitsyn reminded that the market for high-tech companies is traditionally high risk, so we predict its rise or fall is difficult. In addition, there is a significant external factor of influence of international tensions. For example, the closure of the Chinese market given the current rhetoric between the USA and China for us corporations can become serious blow. “What seems unrealistic today, may happen tomorrow”, — he stressed.