IPhone maker set to add US$43b to its val­u­a­tion as stock soars

New Straits Times - - Business -

THE Dow topped 22,000 points for the first time in open­ing trad­ing yes­ter­day, bol­stered by a six per cent gain in Ap­ple, the lat­est blue-chip com­pany to re­port strong earn­ings.

About three min­utes into trad­ing, the Dow Jones In­dus­trial Av­er­age stood at 22,011.48, up 0.2 per cent and on track for its sixth-straight record close.

The broad-based S&P 500 rose 0.1 per cent to 2,477.89, while the tech-rich Nasdaq Com­pos­ite In­dex ad­vanced 0.4 per­cent to 6,390.34.

Ap­ple Inc’s sur­pris­ingly strong quar­terly re­sults and fore­cast pushed the iPhone maker’s shares to a record high. Its shares were up 5.5 per cent at US$158.33 (RM678.58) in pre-mar­ket trad­ing, and were set to add an­other US$43 bil­lion to the mar­ket cap­i­tal­i­sa­tion of the world’s most valu­able com­pany.

The stock has gained 30 per cent this year and closed at US$150.05 on Tues­day.

At least three bro­ker­ages raised their price tar­gets on the stock, with Bar­clays mak­ing the most bullish move by rais­ing its price tar­get by US$23 to US$146.

Ap­ple on Tues­day re­ported bet­ter-than-ex­pected thirdquar­ter re­sults and in­di­cated that its up­com­ing 10th-an­niver­sary phone lineup was on sched­ule.

Sales of the iPad made a sur­prise come­back in the quar­ter and were up 15 per cent from a year ear­lier. The com­pany also hit a mile­stone of 1.2 bil­lion iPhones sold.

Rev­enue from emerg­ing mar­kets, ex­clud­ing China, rose 18 per cent and re­mained a bright spot. Greater China, how­ever, re­ported its sixth straight de­cline in rev­enue. Agen­cies

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