Apple Inc. (NASDAQ:AAPL) Outperformed the Broader Market On iPhone 5 Optimism
Shares of Apple Inc. (NASDAQ:AAPL) have outperformed the broader market in the recent week significantly with a gain of over 9% since May 21, 2012, compared to a rise of 0.80% on the DOW in the same period.
The stock started to move higher on May 21, when it surged about 6% after the Wall Street analysts turned bullish on the company’s iPhone 5 with analyst at Piper Jaffray stated that the company may launch its latest iPhone by this October, easing fears over shortage of 28 nm baseband radio chip at Qualcomm. The firm further stated that this is going to be biggest consumer electronics product launch of 2012.
Elsewhere, analyst at Goldman Sachs issued their note on ongoing subsidy issue, stating that it does not expect U.S. carriers “to make any material changes to retail prices for leading smartphones,” since the market has four major carriers all pushing hard to grow their smartphone businesses.
The stock then consolidated within a narrow range over the newst one week. Shares of the company resumed its uptrend on May 29, 2012, when it rose another 1.20% followed by a gain of 1% in the previous trading session.
Yesterday, the stock outperformed as the DOW ended lower 1.30%.Yesterday, China’s Telecommunication Equipment Certification Center issued a license for new iPad (model number A1430) to the company, which would allow Apple to initiate sales in China.
The stock had been languishing in the past one month after posting a sharp intraday gain just after the earning day, which took the stock to above $600 mark. However, the rally was short lived and the stock started to plummet and fell about 14%. There stock sold off on broader market weakness due to ongoing crisis in the European region.
From the technical prospective, the stock just re crossed its 50-Day Moving Average of $572 and signaling that the stock could move further higher in the near term.
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