Mumbai: Reports about iPhone maker Apple readying a series of subscription bundles for its digital services added over 1.5% to the Cupertino, California-based company’s stock on Thursday night which pushed the company closer to a $2-trillion market capitalisation. Saudi Aramco is the only country which has reached this milestone.In early trades on Friday, the Nasdaq-listed stock was marginally lower at $459, which gave it a market cap of $1.96 trillion.
According to estimates, to reach the $2-trillion mark, the stock price should reach $467.8. In effect, at 22.30IST, the stock was less than $10 a share from its immediate target. In early trades, it had touched a high of $459.7.
Earlier on Thursday, Bloomberg had reported that Apple was readying to offer a range of services bundles in October under the brand name Apple One. The services would let consumers subscribe to several of Apple’s services at a lower monthly price than if they are purchased separately.
Despite the stock being at a historic high level, there are tech analysts who believe that the stock is undervalued because of its strong focus on innovation and cash flows.
On July 30, Apple announced its April-June quarterly results with a 11% jump in revenues to close to $60 billion and an 18% rise in earnings per share to $2.6.
With its international sales growing 60%, on both counts it beat analyst expectations as globally people, mostly stuck in their houses due to the pandemic and the spreading infections, are relying on their gadgets more than ever.
The iPhone maker is also readying to raise up to $5.5 billion since borrowing costs have fallen to record lows. In the process it joined other tech majors like Google and Amazon in borrowing when costs are hugely attractive.
Credit: Stocks-Markets-Economic Times