For Apple Inc. , the year 2016 could be make-or-break, according to FBR Capital Markets analyst Dan Ives. On Tuesday, Apple stock closed up 1.80% at $108.74. Year to date, the stock is down almost 2% while in the last one-month, it is down almost 8%.
iPhone 7 must be a hit
On Tuesday, speaking to CNBC’s “Squawk Box, Ives said, “I think the blooms are coming off the rose a bit for Apple. Not just in terms of the multiple, or in terms of what investors want to pay, but in terms of products.” Apple Inc. launched its watch, which “was not successful,” and the firm has also “suspended” its streaming TV plans. In September, the firm came out with the iPhone 6S and 6S Plus, and sometime next year is expected to come up with the iPhone 7.
“It’s a make-or-break, white-knuckle period for Apple,” Ives said, adding the iPhone 7 must be a hit for the company to be successful.
Apple helps S&P go green
After a long while, Apple helped the S&P 500 and Nasdaq to end the day in the green. Wall Street was up sharply on Tuesday led by tech stocks, especially Apple and Amazon. All the major S&P sectors ended the day in green, led by the technology sector, which witnessed its strongest performance this month.
For Apple Inc. shares jumped 1.8% yesterday following a recent sell-off owing to the concerns related to the soft iPhone sales. Meanwhile, Amazon gained 2.78% hitting a record high of $693.97. For the third-week of December, the retailer registered over 3m new Prime memberships, suggesting a robust holiday demand.
Speaking to Reuters, BB&T Wealth Management’s senior VP, Bucky Hellwig said, “tech stocks, and some healthcare stocks, can deliver top-line growth in a situation where a lot of other companies have to generate earnings through cost-cutting or share buybacks. What you’re seeing there is a bid for growth.”
After a steep correction in August – owing to the turmoil in China’s stock market and concerns over a slowdown in the economic growth – the S&P 500 has now recovered 11%. Year to date, the S&P 500 is up almost 1% while Nasdaq is up almost 8% with just two trading sessions remaining in 2015. However, Dow Jones industrial average is down almost 1% year to date.