Apple stock: Why is it trading higher lately?
Apple Inc. (AAPL) recently came into the limelight after its share price surged to a record high of $154.98. Apple stock is now up nearly 20 percent on a year-to-date basis. The 52-week range of the stock is $103.10-$154.98, while the company’s market value has just crossed $2.5 trillion.
What Drove Apple Stock?
Apple is expected to receive around $15 billion from Google for keeping “Google Search” as a default search option for iPhone users. The amount is well above $10 billion Apple reportedly received in 2020.
Some industry experts have linked the latest surge in Apple’s share price to the recent development. Moreover, research firm Bernstein projected that Apple is expected to receive payments anywhere between 18 billion and $20 billion from Google in 2022.
However, Apple has been facing heavy criticism for retaining Google as the default search engine on its devices. But at the same time, payments from Google account for a significant portion of its total Services revenues.
Apple has proved on several occasions that it can boost its revenue in so many ways. Overall, the growth prospects of Apple stock look bright. It is also doing well in terms of financial performance.
The company posted a record revenue of $81.4 billion for the third quarter ended June 26, translating to a year-over-year surge of 36 percent. Its Q3 earnings also jumped nearly two folds to $21.74 billion.
Looking forward, analysts expect Apple’s earnings to increase about 18 percent annually for the next five years, significantly higher than 8 percent growth over the past five years. In short, Apple stock is poised to gain more value in the coming years.