On November 18, the stars aligned for Apple stock (AAPL) - Get Apple Inc. Report. Driven by one of the buzz phrases of the moment, “autonomous vehicles”, shares of the Cupertino company reached two key milestones at once: (1) all-time high on the share price and (2) most valuable company in the world once again.
The Apple Maven tells this story that has likely made AAPL investors smile from ear to ear on Thursday.
(Read more from the Apple Maven: Apple Stock: The Best Holiday Season Ever For The iPhone?)
AAPL on Thursday: what happened?
As of November 18, every investor who had held Apple stock for any more than 10 minutes was officially above water. Shares ended the trading session priced at $157.87, less than a buck below the intraday high of 3:50 p.m. EST, and more than a dollar above the previous all-time high of September 7.
With the stock having climbed 2.9% on Thursday against Microsoft’s (MSFT) - Get Microsoft Corporation Report more modest 0.6% gain, AAPL also stole from the Redmond-based software giant the title of most valuable in the world: market cap of $2.59 trillion vs. MSFT’s $2.56 trillion. While Apple stock was first at reaching the $2 trillion valuation mark, it had no longer been the highest market cap in the world since late October.
Why so bullish?
The Apple Maven has recently talked about why AAPL stock had come within striking distance of its historical peak. With a couple of recent sell-side reports fueling optimism about Apple’s 2021 holiday season (iPhone sales could set a record) and long-term opportunities in the metaverse, investor sentiment quickly shifted to bullish.
Then, on Thursday, news surfaced that the long-awaited Apple Car could be closer to seeing the light of day than many imagined. Bloomberg reported that Apple has advanced in developing the chip technology needed to build a driverless car without steering wheel or pedals. Better yet, the vehicle could be launched in as little as three to four years.
Apple’s EV project and its timeline are very much in line with what Wedbush’s Dan Ives had predicted during his conversation with the Apple Maven:
“There has been one step forward, two steps back. Now it’s at a point where it’s coming: we believe 2024 or 2025 is when you see the Apple Car. But first they lay the groundwork over the next three, six, nine months to get there.”
Whether related or not to the speculations around the Apple Car, most EV stocks – except for industry leader Tesla (TSLA) - Get Tesla Inc Report – took a beating on Thursday. Rivian and Lucid, two companies that our partner channel Wall Street Memes has recently addressed, fell by more than 10% each. Even blue-chip car makers General Motors (GM) - Get General Motors Company Report and Ford (F) - Get Ford Motor Company Report ended the day sharply lower relative to the rest of the market.
Apple stock’s return to all-time high and most valuable in the world was probably fueled by 3 factors: (1) optimism about iPhone sales in the holiday quarter, (2) opportunities in mixed reality and the metaverse, and (3) chatter about the Apple Car. Which excites you most?
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(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)