The shares of Apple closed at a record high on Feb. 13, on expectations by Wall Street analysts that this year's iPhone models and the demand from consumers will boost what has become lackluster sales.
With optimism now surrounding the company, the question now shifts to whether Apple will be able to deliver on the high expectations placed on it and the upcoming iPhones.
Apple Shares Close At $133.29
Apple's stock climbed by 0.9 percent to $133.29 at the close of trading on Feb. 13, setting a new record high for the closing price of its shares. The previous record was $133.00, which was closed on Feb. 23, 2015.
With a stock price of $133.29, Apple saw its market value increase to $699.3 billion, making it the most highly capitalized company, with Google parent Alphabet in second place with $573 billion. Apple's stock price jump also helped increase the market capitalization of the S&P 500 to over $20 trillion for the first time ever.
Apple Stock Recovers
After posting its previous closing record high of $133.00 per share, Apple saw its stock drop for over a year on concerns regarding the declining growth of the smartphone industry and the company's prospects beyond its flagship iPhone product. However, Apple was able to post higher-than-expected sales for the iPhone during last year's holiday quarter.
The iPhone 7, launched in September 2016, did not convince as many current iPhone owners to upgrade their smartphones as the iPhone 6s, but it successfully attracted new iPhone customers. Such a trend, if it would continue, bodes well for the upcoming iPhone models of this year.
"It's probably just a continuation of the rally following the last quarter report and guidance for the second quarter that's giving investors a bridge to the next iPhone that many are getting excited about," said Walter Piecyk, an analyst for BTIG.
Apple Investors Excited For iPhone 8
Investors have been purchasing stocks of Apple in anticipation of the next iPhone models that the company will unveil in September, especially for the premium 10th anniversary model iPhone 8, which is also known as the iPhone X.
The iPhone 8, or iPhone X, is said to have a 5.8-inch OLED screen and will look like "a smooth black monolith," with just a few visual interruptions to its design. The smartphone is rumored to do away with the physical Home button and side buttons, replacing them with a button located underneath the screen's surface and touch-sensitive inlays, respectively.
There have been reports that the iPhone 8 or iPhone X, in addition to the 4.7-inch iPhone 7s and 5.5-inch iPhone 7s Plus, will feature wireless charging. However, a more recent report claims that the feature will not be available out-of-the-box, with customers required to purchase a wireless charging station separately from the smartphones.
Rumors such as these have driven up the hype surrounding Apple's next iPhones, not just for investors but also for customers. However, without the smartphones being revealed yet, it is too early to tell if the iPhones will be able to sustain Apple's record high stock prices and growth.