Is AAPL Stock (NASDAQ:AAPL) Ready to Hit New highs This Week?

Tech behemoth Apple Inc. (NASDAQ:AAPL) had been in the middle of a good run before the coronavirus crisis commenced. In its fiscal second-quarter earnings, the company reported a 1% year on year rise in revenues and a 4% rise in earnings per share.

Major Triggers

It goes without saying that the coronavirus pandemic was a massive blow for Apple since many of the markets in which it operates were forced into lockdowns. However, that did not stop the company from performing strongly. Hence, it is worthwhile to figure out if it is time to perhaps buy the Apple stock.

In a press release, the company’s Chief Executive Officer Tim Cook said that despite the challenging environment, Apple managed to generate growth. That being said, it should be noted that the coronavirus crisis has impacted the company negatively. The launch of the new iPhone has been delayed, and Apple stores in different parts of the world had to be closed temporarily.

On the other hand, the work from measures have been positive for Apple since that has boosted the sales of laptops and other products that are sold by the company. The base of installed devices hit an all-time high in the second quarter, and operating cash flow went up by $2.2 billion years on year to hit $13.3 billion.

However, that is not all. The company also bumped its dividend payout by as much as 6% to $0.82 a share and also added as much as $50 billion to its share buyback initiative. That being said, it is likely that the pressure put on its business by the coronavirus pandemic is going to tell in the fiscal third quarter.

Moreover, discretionary purchases are also expected to go down due to the economic turmoil. There might be some uncertainty for Apple in the near terms, but investors need to note that the company is built for long term gains. Hence, if an investor has a long term view, then Apple could be a stock worth owning.

About Travis Garlick 1752 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.