Home / Business / Why Apple stock rose to a new high today

Why Apple stock rose to a new high today

What happened

Shares of Apple (NASDAQ: AAPL) jumped 10.5% to a new closing high of $ 425.04 on Friday, after the company’s expectations-crushing results for the third quarter.

So what

Despite a host of coronavirus-related challenges, Apple’s revenue jumped 11% year-over-year to $ 59.7 billion. The technology giant’s profit growth was even more impressive. Earnings per share climbed 18% to $ 2.58. Wall Street had expected revenue and EPS of only $ 52.3 billion and $ 2.04.

A person is holding an upward sloping digital chart.

Apple’s share was at a record high on Friday. Image source: Getty Images.

The profit was broad-based, with Apple experiencing strong growth in its iPhone, Mac, iPad, wearables and services.

“Apple’s record June quarter was driven by double-digit growth in both products and services and growth in each of our geographic segments,” said CEO Tim Cook in a press release. “In uncertain times, this result is a testament to the important role our products play in our customers’ lives, and to Apple’s relentless innovation.”

Now then

Apple also announced a 4-for-1 share split to “make the stock more accessible to a wider base of investors.” Shareholders with a record close on August 24 will receive three additional shares for each Apple share they own. Apple shares will begin trading on a split-adjusted basis on August 31.

Based on the stock’s gains on Friday, investors appreciated the news.

Source link