One powerful fundamental influence on a stock price is a new product release. The release of the new iPhone 13, expected in late September, has been driving headlines for some time. The anticipation alone pushed the price to a near all-time high of $154 in early September.
But of course, not all releases create a bullish price move. So does the iPhone 13 have the weight to affect an already thriving company?
Projections for a rise in Apple price are as high as 30% as iPhone 12 still enjoys high demand. With new iterations on Bluetooth accessories and the ever-popular Mac products, AAPL forecasting seems to be a no-brainer. The profitability of such companies is directly affected by the markups too, and Apple margins rose from 38% to a staggering 43% this quarter.
Despite legal disputes with gaming giant, Epic, and a growing global chip shortage, Apple continues its global expansion, pushing streaming and cloud services to new highs.
It’s no secret that the pandemic was favorable for many tech and pharmaceutical companies. As the world dived into online solutions, Apple got a big chunk of the market. The pandemic won’t last forever, but the effect it made on how the world operates just might. The chances that digital devices will go out of fashion is near zero, and how that translates to tech companies doesn’t require a crystal ball.
While the long-term outlook seems rosy, day traders should remember that Apple’s revenue is very volatile, so entry points are hard to identify. iPhone 13 will no doubt be a success. Apple fans will replace their iPhone 12, whether needed or not. But given that Apple’s current all-time highs are generated by multiple established revenue streams, traders probably shouldn’t bank on a spike based on the hype of this latest product.
Technical analysis is a must, especially with trending product releases, and one eye on upcoming news and fundamental announcements is just smart. Be cautious, but be ready.
Interestingly, that perfect entry point for a day trader would also be of interest to long-term investors, so choose wisely when it comes to closing your trades.