There's a lot of speculation about why Apple has now achieved its highest level in almost two years. We know about the company's strong earnings reports, which included a solid beat on every metric outside of the iPad.
Recall, Apple's earnings rose 7% year over year to $10.2 billion. Aside from beating earnings estimates by 14%, Apple's revenue climbed 5% year over year to $45.6 billion, which also topped estimates by 5%. Perhaps more impressively, Apple was able to erase notions of slumping sales in its flagship iPhone device. Apple exceeded estimates by 13%, reaching 43.7 million units. Analysts were modeling for only 38.5 million.
These numbers were nothing short of impressive. Now that they've brought Apple to that psychological threshold of $600, investors want assurances that CEO Tim Cook, who has come under fire lately, will do everything in his power to push Apple beyond $600. This is where Cook, who has promised that Apple will enter new product categories, is beginning to take shape.Aside from announcing an unusual 7-for-1 stock split, Apple didn't unveil any new products during the earnings report. But that doesn't mean they're not on the way. While we continue to hear rumors about an iWatch and a possible iTV, there hasn't been any evidence to suggest that Apple has been working on these products -- until now.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts