A year ago, many investors had given up on Apple, whose stock price had fallen more than 30 percent from its 2015 peak. Apple’s once-unstoppable growth had come to a crashing halt: The number of iPhones sold was down 13 percent, and the company posted its first revenue decline in 13 years.
Today, Apple’s business remains sluggish, but that hasn’t stopped investors, including the famously tech-averse Warren E. Buffett, from falling in love with it again. Shares of the tech giant — the most valuable company in the United States by market value — have repeatedly hit new highs this year. On Friday, they closed at $143.65, up nearly 60 percent from last May’s trough.
What’s driving the stock, say skeptics and fans alike, is hope — hope that the new iPhones due in September, on the 10th anniversary of the original iPhone’s introduction, will be dazzling enough to inspire existing iPhone users to upgrade and prompt others to switch from Android phones made by Samsung, Huawei and other manufacturers.
“Everyone expects Apple to cure cancer with their next product launch,” said Kevin Landis, chief executive of Firsthand Funds, who has managed tech-focused mutual funds through many ups and downs.
Sourced from the NY Times.