Apple’s Chart-Topping Run Gets a Boost From individual investors

    Apple Inc. is back in a familiar role as market leader after a painful first half of the year that saw hundreds of billions of dollars in market value disappear, and individual investors are a big reason for the rally.
    By: BLOOMBERG
    | Updated on: Aug 11 2022, 22:49 IST
    Smartphones under 50000: Grab Apple iPhone SE 3, Samsung Galaxy A73 5G, and more
    iPhone SE 3rd Gen
    1/5 Apple iPhone SE 3: The iPhone that you can get for under Rs. 50000 is iPhone SE 3. The price of the phone starts at Rs. 41,900. The phone brings some flagship features such as IP67 rating for water and dust resistance, wireless charging, a compact design, the powerful A15 chip, and at least 5 iOS updates. (Amritanshu / HT Tech)
    Motorola Edge 30 Pro
    2/5 Motorola Edge 30 Pro: With a starting price of Rs. 44,999, the Motorola Edge 30 Pro comes with the Snapdragon 8 Gen 1 chipset. The phone also offers certain standout features such as a 144hz pOLED display, a 4800mAh battery with 68W wired charging and support for wireless charging, and a 50MP main camera along with a 50MP ultra wide camera. (Amritanshu / HT Tech)
    image caption
    3/5 Samsung Galaxy A73 5G: The phone can be a good option for people who love clicking pictures. With a starting price of Rs. 41,860, the phone sports quad rear camera setup with the 108MP main camera, supports Snapdragon 778G chipset, 120Hz AMOLED display. The phone is also rated IP67 for water and dust resistance. (Amritanshu / HT Tech)
    image caption
    4/5 iQOO 9: The iQOO 9 5G is a best value you can get from a phone coming with a price tag of Rs. 42,990. you get Snapdragon 888+ chip, a 120Hz AMOLED display, a super-fast 120W fast wired charging, and a set of triple rear camera setup. (iQOO)
    image caption
    5/5 Realme GT 2 Pro: Coming with a price tag starting at Rs. 50,199, the Realme GT 2 Pro is a fancy phone having a paper-like rear design. The phone features the latest Snapdragon 8 Gen 1 chipset, a 120Hz AMOLED display with variable refresh rate, 5000mAh battery with 65W wired charging, and a 50MP main camera, 50MP ultrawide and micro lens camera. (Priya/HT Tech)
    Apple
    View all Images
    Apple Inc. is back as market leader after a painful first half of the year.  (AFP)

    Apple Inc. is back in a familiar role as market leader after a painful first half of the year that saw hundreds of billions of dollars in market value disappear, and individual investors are a big reason for the rally.

    Since bottoming in mid-June, the iPhone maker's shares have surged 27%, outpacing the S&P 500 Index and the Nasdaq 100 Index. That's put Apple back on top as the world's most valuable company and within sight of turning positive for the year. Apple is now down just 7.2% in 2022, compared with a drop of 19% for the Nasdaq 100.

    Apple shares benefited from a relief rally after its quarterly earnings were better than feared, and its ongoing buoyancy reflects Wall Street's confidence in its ability to continue churning out big profits. Individual investors, who recently helped ignite rallies in speculative corners of the market, have flocked to the stock.

    “Retail investors have been strong buyers of Apple over the past couple of months, first attempting to buy the dip, then buying into the recent recovery,” said Lucas Mantle, a data scientist at Vanda Research, which tracks investor positioning.

    Apple has routinely ranked among the most purchased stocks among that cohort over the past month, according to data from Vanda Research.

    Despite concerns about a potential recession in the US and risks related to supply chains in China, Apple's profit estimates have stayed steady while those for other megacap companies and the technology industry more broadly have shrunk. The average earnings-per-share estimate for Apple next year has fallen less than 1% over the past month, compared with a drop of about 4% for Microsoft Corp. and 7% for Amazon. com Inc., according to data compiled by Bloomberg.

    Mom-and-pop traders are no doubt attracted to Apple's massive cash flows that have allowed the company to return more than $80 billion to shareholders in the form of dividends and share repurchases in the first three quarters of this fiscal year.

    The price for a piece of that cash geyser, however, doesn't come cheaply. Apple is trading at 26 times profits projected over the next 12 months, well above the 10-year average at 17 times. By contrast, the S&P 500 is priced at about 17.5 times earnings.

    Apple, with a market value of $2.6 trillion surpassed oil giant Saudi Aramco again in July to become the world's largest company. It's 13% away from the $3 trillion valuation that seemed a nearly impossible milestone just a couple months ago.

    Tech Chart of the Day

    The Nasdaq 100 has rallied 18% from its June low as technology stocks stage a gradual rebound. The tech-heavy index now trades at about 23 times forward earnings, up from a 27-month low in June of 18.6. However, it still trades about 28% cheaper than its September 2020 high.

    Top Tech Stories Chinese e-commerce giant Alibaba Group Holding Ltd. let go of 9,241 employees in the three months to June, according to the company's latest filing. Micron Technology Inc. said it will use “anticipated” government grants and credits to help it invest $40 billion by the end of the decade to build out US semiconductor manufacturing capacity. 

    US semiconductor firms are announcing billions in investments as President Joe Biden is set to sign a broad competition bill Tuesday that includes $52 billion in domestic semiconductor research and development. Snap Inc. is introducing tools for parents or trusted adults to better supervise teen behavior on its popular disappearing photo and video app, Snapchat. 

    Cathie Wood said Ark Investment Management's sale of some of its Coinbase Global Inc. holdings last month came after what the firm viewed as regulatory “uncertainty” in the cryptocurrency world. China's top leadership has grown increasingly frustrated with a years-long failure to develop semiconductors that can replace US circuitry, an embarrassment capped by a flurry of anti-graft probes into top industry officials and the $9 billion rescue of Tsinghua Unigroup. 

    ByteDance Ltd. has acquired one of China's largest private hospital chains for about $1.5 billion, deepening a foray into health care via one of the largest domestic tech deals since Beijing's internet crackdown. Take-Two Interactive Software Inc. missed analysts' estimates for annual profit after incorporating results from its purchase of mobile-game maker Zynga this year. The shares fell about 4% in extended trading. Salesforce Inc. named Brian Millham as president and chief operating officer, elevating a 23-year veteran of the software company.

    Follow HT Tech for the latest tech news and reviews , also keep up with us on Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

    First Published Date: 11 Aug, 22:49 IST
    NEXT ARTICLE BEGINS
    keep up with tech