Why the Apple Stock is Rallying Today

The shares of Apple Inc. (NASDAQ: AAPL) has been on an upward trend since the early trading hours on Tuesday, after the disclosure of telecom carriers regarding the pre-order sales data of the iPhone 7 and iPhone 7 Plus during the weekend.

As of 5:24 AM GMT-4 on September 14, the AAPL stock is trading at $108.13, up by 2.55 percent or 2.69 points. So far, the trading activity has also been strong as it has already traded 34.76 million times by now. This figure is equivalent to 1.16x the average daily trading volume of 29.92 million shares.

Speaking about the newest iPhone model, the CEO and President of T-Mobile US Inc. (NASDAQ: TMUS) stated: “iPhone 7 is the biggest pre-order in T-Mobile’s history, and that says a lot about our momentum, and the excitement customers have for iPhone 7 and iPhone 7 Plus!” The pre-orders for the latest device during the weekend edged higher by threefold in comparison to the iPhone 6 model.

In addition, a record has been set last Friday for T-Mobile, as the iPhone 7 hit a new single day sales record for any smartphone in the entire history. Aside from this, the newest iPhone model also broke all the past records for pre-registration at T-Mobile even when the pre-sales data over the weekend are not considered.

Apart from T-Mobile, Sprint Corp (NYSE: S) also posted a growth of 275 percent on a year-over-year basis in terms of the pre-orders for the iPhone 7 and iPhone 7 Plus within the first three days after the release of the latest iPhone models. The Sprint CEO and President Marcelo Claure was thrilled with the update and said, “It’s clear that Sprint customers want to get the most out of the incredible iPhone 7 and iPhone 7 Plus.”

Analysts and market players were concerned regarding the prospects of the iPhone 7 cycle. Earlier in the week, Mr. Gene Munster of Piper Jaffray opined that the lead time of the iPhone 7 is comparable with the last two phone releases. While his statement seemed aggressive, there were only a few who agreed with the analyst’s argument. Nevertheless, the Piper Jaffray analyst’s forecasts now appear to be a bit conservative in the wake of the updates on the AAPL stock yesterday.

He continued to estimate a year-over-year revenue growth of 11 percent for the iPhone 7 cycle. Mr. Munster also reaffirmed an Overweight rating on the shares of the Cupertino, California-based tech giant, and set a price target of $151.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Pre-Market Alerts!

Get Pre-Market Analysts' Upgrades, Downgrades, Earnings & Initiations with our FREE daily email newsletter.