Apple’s stock over the last year, credit Yahoo Finance
Apple will report its fiscal third quarter earnings on July 27th. Investors often use the quarterly earnings report as a catalyst to rush into the stock or use the report as a signal to dump the stock. Despite the recent surge into the stock, for the year Apple trails Google, Microsoft, Facebook, and Amazon shares:
- Apple (+8.9% in 2021 to date).
- Google (+44.3% in 2021 to date).
- Microsoft (+25.9% in 2021 to date).
- Facebook (+28% in 2021 to date).
- Amazon (+13.5% in 2021 to date).
According to Gary Kaltbaum, Capital Management President, a lot of money is being invested in the tech sector. “The big money flows are heading right now into Amazon, Apple, Google, Facebook, Microsoft with a smattering of others and I think it continues at least into earnings which is about three weeks away,” Kaltbaum says.
Some analysts say that Apple is in the beginning of an iPhone super cycle with plenty of active users ready to upgrade to a new model. Over the next few years as 5G connectivity expands and gets better, many iPhone users will want to own the fastest model they can get their hands on. Additionally, Apple is expected to offer two headsets, one a mixed reality version for game players, and an AR variant that look like regular frames. Some analysts see the latter as replacing the iPhone as Apple’s next big thing when launched as soon as 2023.