Apple Stock Price Hits Record-High $366.53, Up 63% In 3 Months

On December 31, 2019 the last trading day of the past year, the share price of Apple Inc. improved to $292.16 from $290.04. This increase set the seal on Apple's stunning performance, which saw its market cap rise more than 80% in 2019, the company's best year in a decade. Apple's market cap surged by more than $530 billion over that 10 year time span.

Now, Apple is on track to see 2020 become its best year in 11 years despite the economic paralysis induced by COVID-19. It's among the leaders pulling Wall Street out of the deep crater it was blasted into in March by the pandemic.

On Tuesday, Apple saw its share price improve 2.13% to $366.53. It's the sixth time this month the stock has closed at a record high. More surprisingly, Apple has rallied 63% over the past three months, helping the Dow Jones Industrial Average gain 41%.

This time, however, the impetus pushing Apple shares to new heights wasn't any news of a new COVID-19 cure or a trillion dollar government stimulus. Analysts cheered Apple's intent to install its own custom processors in the Mac and the deeper integration of its various operating systems.

Apple unveiled new operating systems for its iPhones and computers on Monday. It also said it will use its own chips to build its new Mac computers, ditching Intel’s processors.

Apple’s keynote address at the ongoing and virtual WWDC developers conference (June 22 to 26) saw it preview software updates for its devices. More importantly, Apple confirmed widespread rumors it will install its own silicon chips in its Macs over the next couple of years. It's a clear attempt to foster innovaton anew and continue its strategy of vertical integration with the growing convergence in its mobile and MacOS.

“Perhaps the biggest takeaway from today’s event was the reassurance that Apple is still driving innovation and new ways to use technology hardware and software,” wrote Wamsi Mohan, Managing Director, IT/Enterprise Hardware and Tech Supply Chain at Bank of America Merrill Lynch.

Mohan praised the AirPods incorporating surround sound and spatial audio and the Apple Watch supporting more health workouts, and tracking sleep, among others. He has a buy rating for Apple and a $390 price objective on Apple’s stock.

UBS analyst Timothy Arcuri boosted his price target for Apple to $400 from $325 while maintaining a buy rating. Arcuri said Apple’s chip announcement at WWDC was largely “aimed at using integration to drive even more stickiness of the ecosystem."

Other analysts saw Apple's announcement as mere fluff. Toni Sacconaghi, senior sell-side equity research analyst at Sanford C. Bernstein, pointed out Apple provided virtually no updated operational or financial metrics.

He was also disappointed Apple had little to say about the progress of Apple TV+. He was disappointed Apple chose not to comment on developer and regulatory scrutiny on the App Store. Neverthess, Sacconaghi boosted his price target to $375 from $285.