Shares of Apple (AAPL, Financial) rose Monday to an all-time high of $246.5, putting the company's market capitalization at $3.73 trillion. This is a significant milestone, but analysts have cautioned about the overvaluation, especially with technical indicators showing signs of an overbought market. The stock has delivered a 26.75% return year to date and has a P/E of 39.82.
Apple sold a record $94.9 billion in the fourth quarter of fiscal year 2024, giving revenue the boost of the 9th generation iPhone, which saw a 6 percent uptick over last year's sales. The tech giant also unveiled plans to invest $1 billion in an Indonesian manufacturing facility. He confirmed its partnership with Amazon (AMZN, Financial), But they also use newly launched AI servers to rapidly create applications using Amazon Web Services.
The analyst sentiment on Apple is mixed. Though Jefferies has a neutral rating and Wedbush Securities still has an outperform rating, KeyBanc remains downbeat with the stock, which it rates as underweight.
Apple's roadmap has been to release iOS 18.2 along with enhanced things driven by AI and to enhance Siri further to be among natural interactions. However, there are hurdles, such as possible sales damage from the iPhone 17 Slim design in China and lower indexed spending. Government subsidies in China and buzz regarding the imminent Apple Intelligence product launch are mitigating these.
It is resilience, too, with analysts pointing to Apple's continued innovation and strategic investments as a cautionary warning that the market may soon take a breather and correct at inflated valuations.
