Apple Shares Could Surge Another 27%, Says Wedbush Analyst

After reaching a market value of two-trillion dollars earlier this week, Apple may yet surge by another 27 percent, according to Wedbush analyst Daniel Ives (via BusinessInsider).

iu 5

Ives believes that Apple has the potential to make further significant gains over the next year, even though the company has already hit the milestone two-trillion dollar valuation. He has classified Apple stocks with an "outperform" rating, with a target price of $515 and an optimistic bull case of $600. This prediction would place Apple as much as 27 percent higher than it closed yesterday.

"We still believe the stock has a lot of gasoline left in the tank with an iPhone 12 'supercycle' on the near term horizon," Ives wrote.

Ives described the possibility as a "once in a decade" opportunity, as "we estimate roughly 350 million of Cupertino's 950 million iPhones worldwide are in the window of an upgrade opportunity." He believes in "massive pent-up demand around this supercycle," which is the main indication that Apple's price could surge going into next year. China is also crucial to Ives' analysis, where he sees "considerable strength" that could account for approximately 20 percent of iPhone upgrades over the next twelve to eighteen months.

Beyond the ‌iPhone‌, Ives' thesis places considerable emphasis on Apple's increasing services ventures, which he values between $700 billion to $750 billion. He believes that Apple services could generate more than $60 billion in annual revenue next year alone. He also recognizes the boom in wearables, such as AirPods and Apple Watch, which have seen an increase in sales of 25 million units this year.

Tags: AAPL, Wedbush

Top Rated Comments

nylonsteel Avatar
13 months ago
do your due diligence when investing
no one can predict the future
its your money
Score: 12 Votes (Like | Disagree)
Andres Cantu Avatar
13 months ago
Apple has added $440 billion to its market cap over the last month, which is more than the current market cap of 493 companies in the S&P 500.

I like Apple products, but this won't end well. Top-heavy S&P 500 is just like the dot-com bubble. The rest of the companies need to participate in the growth, unless they want the whole US to work for just 5 companies.
Score: 9 Votes (Like | Disagree)
mcfrazieriv Avatar
13 months ago
Wonder how much investment Daniel Ives has in Apple stock? Telling all the stupid people that it's bound to keep going up might get them to buy in... has Apple secretly invented the cure to cancer? The services business is the area of growth and the company still offers (more or less) a similar product lineup after 5 years.
Score: 7 Votes (Like | Disagree)
Jmausmuc Avatar
13 months ago

I don't disagree with that. I think at some point unemployment catches up. There's been a lot of demand pulled forward from the future due to the extra unemployment benefits. A lot of people needed them, but there's also a lot of people that didn't and spent it all on tech items.

The Us is doomed.
Most people actually revived more in unemployment benefits than they would have gotten from working.

The FED is throwing money left and right, putting a bad-aid on a larger problem.

this is going to end incredibly bad. Too bad the US is a major economic powerand will drag down everyone else with their ludacris monetsry policies.
Score: 6 Votes (Like | Disagree)
darkslide29 Avatar
13 months ago
When Apple dropped to about $300ish, I had some cash sitting in a trading account and bought S&P stock to not put all my eggs in one basket. Decent gains, but not Apple or Tesla level gains. When Apple hit $400, I had regrets. Now that Apple is near $500, more regret lol.
Score: 5 Votes (Like | Disagree)
Baymowe335 Avatar
13 months ago

Apple has added $440 billion to its market cap over the last month, which is more than the current market cap of 493 companies in the S&P 500.

I like Apple products, but this won't end well. Top-heavy S&P 500 is just like the dot-com bubble. The rest of the companies need to participate in the growth, unless they want the whole US to work for just 5 companies.
Apple’s earnings have zero in common with the dot com bubble stocks.

Apple trades at 33X earnings, which is completely reasonable with a $55B services income stream and 600M paid subscribers with 1.5B active devices.

Apple has just started to get the same respect MSFT got when their multiple expanded. Apple also makes a lot more profit than MSFT.

The only big ones looking super bubbly are TSLA and perhaps AMZN and NFLX.
Score: 5 Votes (Like | Disagree)

Top Stories

Flat 2021 MacBook Pro Mockup Feature

Unreleased Apple Macs and Apple Watches Listed in Eurasian Database Ahead of Fall Product Launches

Monday August 2, 2021 9:34 am PDT by
Apple is preparing for a slew of fall product launches according to new filings that showed up today in the Eurasian Economic Commission database. There are listings for new Mac and Apple Watch models, all of which have previously unknown model identifiers that indicate that they're upcoming devices. There are six new Apple Watch identifiers, including A2473, A2474, A2475, A2476, A2477, and...
ifixit iphone12 mini

Apple to Make Space for Larger Batteries in iPhones, iPads, and MacBooks By Adopting Slimmer Peripheral Chips

Monday August 2, 2021 2:12 am PDT by
For future iPhones, iPads, and MacBooks, Apple plans to use smaller internal components in an effort to increase the size of the device's battery, according to DigiTimes. Image Credit: iFixit Specifically, Apple plans to "significantly increase the adoption" of IPDs or integrated passive devices for the peripheral chips in its products. These news chips will be slimmer in size and allow for...
Apple Watch 7 Unreleased Feature

Apple Watch Series 7 to Focus on One Major Upgrade

Wednesday August 4, 2021 2:12 am PDT by
The upcoming Apple Watch Series 7 will focus on one important feature in an attempt to tempt existing Apple Watch users that have an older device to upgrade, according to recent reports. Apple may skip adding new health sensors to this year's Apple Watch Series 7 in favor of improving the device's battery life. The company is said to be adopting new double-sided System in Package (SiP)...
magic keyboard touch id

Apple Makes Magic Keyboard With Touch ID Available for Separate Purchase

Tuesday August 3, 2021 5:22 am PDT by
Apple has made the Magic Keyboard with Touch ID, which previously was only available with the purchase of the new 24-inch iMac, available for purchase individually for $149. Apple also retails the Magic Keyboard with Touch ID and a numeric keypad for $179. A standard Magic Keyboard without Touch ID or a numeric keypad is available for $99, and a new Magic Trackpad for $129. One major...
iPhone 13 Wi Fi 6E feature update

Wi-Fi 6E Explained: What It Could Mean for iPhone 13 and Beyond

Monday August 2, 2021 8:00 am PDT by
The iPhone 13 is widely expected to come with Wi-Fi 6E capabilities, and while it may seem rather nuanced to the average consumer, with only improved speeds and being "up to date" in the realm of Wi-Fi technology, it's actually a fairly significant improvement, laying the groundwork for much of what we know the future holds. To truly understand Wi-Fi 6E, MacRumors sat down for an exclusive...
applestoredown

Apple's Online Store Temporarily Down [Update: Back Up]

Tuesday August 3, 2021 4:01 pm PDT by
Apple's online Apple Store is down at the current time, and attempting to access it to make a purchase gives the standard "Be Right Back" message. Given that it's a Tuesday night/afternoon in the United States and we're not expecting any new products this week, it's likely that this is a temporary maintenance outage that is not related to a new product release. The Apple Store app is also...
themorningshowcarrell

Apple Decided Not to Buy Reese Witherspoon's 'Hello Sunshine' Media Company

Monday August 2, 2021 2:02 pm PDT by
Reese Witherspoon's media company "Hello Sunshine" recently courted various buyers, and while Apple was one of parties interested in buying Hello Sunshine, the Cupertino company did not end up going through with the purchase. Hello Sunshine was valued at around $900 million thanks to its involvement in popular series like The Morning Show," "Big Little Lies," and "Little Fires Everywhere,"...
iPhone 13 Dummy Thumbnail 2

Apple Brings China's Luxshare Precision into iPhone 13 Supply Chain to Meet Production Targets

Wednesday August 4, 2021 12:19 am PDT by
Apple is tapping more Chinese suppliers as it seeks to meet ambitious targets for iPhone 13 production, according to a new report by Nikkei Asia. Apple is set to produce between 90 million and 95 million iPhones through January, according to a previous Nikkei report, and China's Luxshare Precision Industry has won 3% of orders away from Taiwanese rivals Foxconn and Pegatron. Luxshare will...
mac pro new graphics

Apple Introduces New High-End Graphics Options for Mac Pro

Tuesday August 3, 2021 7:34 am PDT by
Apple today began offering new high-end graphics upgrade options for both the tower and rack versions of the Mac Pro desktop computer. This comes on the same day that Apple started selling the Magic Keyboard with Touch ID on a standalone basis. As noted by CNN Underscored's Jake Krol, the Mac Pro can now be configured with new AMD Radeon Pro W6800X, W6800X Duo, or W6900X graphics when...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...