Apple stock has been recovering from the early March lows of $116 per share, currently at $126. Yesterday, on April 6, the stock gained a modest 0.25% to close the session trading at $126 per share.
In premarket action, AAPL started to head higher by 0,15%. Below, the Apple Maven discusses some of the key factors that could move Apple stock during the April 7 session.
Market-wide movers
A few events this Wednesday could move not only Apple shares, but the market more broadly. For instance, ahead of the opening bell, the S&P 500 and Nasdaq have been trading a bit lower. Here are some potential movers:
- TheStreet: Stock futures inch higher after the S&P 500 snaps a three-day winning streak; the Fed releases minutes from its March meeting; Carnival reports earnings; Amazon’s Jeff Bezos supports a corporate tax rate hike.
- On the calendar of events, there will be reports on trade balance and consumer credit. Also, an estimated 12 companies will report earnings.
Apple-specific movers
Beyond broad market movers, Apple stock could also be swayed by company-specific events. For example, Seeking Alpha have reported the following:
- To reflect peer multiple compression on the firm’s higher estimates, Morgan Stanley cuts Apple’s, price target from $164 to $156 while maintaining an Overweight rating.
- A group of analysts including Katy Huberty raises Apple’s Services revenue estimates to account for accelerating Google traffic acquisition cost-related revenue growth and strong App Store revenue. The firm expects Services revenue growth to accelerate by 6 points to 22% Y/Y in FY21, up from the prior 19% Y/Y growth estimate.
- Thought bubble: While companies have long sought to influence policies that directly impact their business, recent trends suggest CEOs are now injecting themselves into political debates or activism that could indirectly affect their bottom line. In an age of cancel culture, and where ideas are carried on social media within minutes, they may have to, though others warn of potential risks and consequences of picking sides. On that note, JPMorgan CEO Jamie Dimon will release his annual shareholder letter today, which is expected to outline ideas for tax and social policies, a day after Amazon CEO Jeff Bezos came out in support of President Biden’s corporate tax hike and infrastructure plan.
Twitter speaks
On Monday, April 5, I asked Twitter about what could drive Apple stock to $175 per share – the most optimist price target on Wall Street currently. Surprisingly to me, the services segment was cited as a key factor, slightly ahead of “killer iPhone 12 sales”. Below are the poll results:
Read more from the Apple Maven:
(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)
