AAPL Stock in the Short-Term: The Bear and Bull Cases
At a valuation of around $3 trillion, not only is Apple the largest stock in the world by market cap. Shares are leaps and bounds (valuation-wise) above other trillion dollar stocks.
The only one that comes even close is Microsoft (NASDAQ:MSFT), with its current valuation of around $2.5 trillion.
That said, I wouldn’t take this big valuation lead to mean that AAPL stock will stay resilient in the near term. As mentioned above, market volatility may knock shares lower.
Although stocks appear to be continuing to re-enter “bull market territory,” keep in mind that issues like high inflation and rising interest rates haven’t fully gone away just yet. The next moves from the Federal Reserve will likely determine whether this nascent bull market continues.
Then again, while AAPL may not be unsinkable, it’s not as if shares could only go lower from here in the near-term. In large part, because there is a strong near-term growth catalyst on the horizon. As I recently discussed, Apple is expected to release a new iPhone this fall. Between now and then, investors could bid up shares, in anticipation of strong Q4 2023 results.