Apple stock record performance for the Dow Jones U.S. index

  •   21/01/2020 - 15h27
  •   Adeline HARMANT

The year 2019 was a profitable year for investors who bet on Apple's share price. The US apple giant's stock has in fact gained more than 85% of its value in one year, which represents the best annual performance of the Dow Jones index but also the strongest annual increase in more than 10 years for this group. We suggest that you learn a little more about this data in order to take strategic positions on this stock in 2020.

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Apple stock record performance for the Dow Jones U.S. index
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An upward progression superior to that of the Dow Jones index :

When we look at the track record of international stock market indexes, and in particular the Dow Jones in 2019, one stock seems to stand out from the crowd. This is the share of the Apple group, which gained more than 85% as of December 30, 2019, and thus leads the year's strongest gains for this index, which, it should be remembered, includes the 30 largest capitalizations in the world. In second place on this list, we find the Microsoft group share which gains 55%, followed by JP Morgan Chase share which gains 42%.

Thus and as of December 30, 2019, the Apple share reached the record price of $292 per share and thus ends this year on a historical high. The U.S. group's total market capitalization on that same date was more than $1,290 billion. However and despite this record for the apple group, it is the Saudi oil giant Saudi Aramco that holds the record for the world's largest market capitalization with a valuation of over $1.6 trillion shortly after its IPO on December 11, 2019. However, it should be noted that the free float of this group, i.e. the share of its capital that is listed on the stock exchange, is currently only 1.5%. As a result, the Apple Group still holds the most liquid stock in the world with almost all of its capital available on the stock market.

This year 2019 was therefore the best year in ten years for the group, as the stock had gained 150% in 2009 when the markets rebounded in the wake of the subprime financial crisis. However, the year 2019 had not started in the best conditions for Apple since the company had issued, on January 2, a warning on the results of its first fiscal quarter following a decline in sales of iPhones, which is still its main source of revenue and profits. In addition, the trade dispute between China and the United States could have led to a boycott of Apple products in China and higher taxes on imports of US-branded products into that country, even those made in China. Fortunately, these threats did not materialize with sales holding up well and the iPhone 11, which was a big hit with the general public when it was launched in September.

 

A success due to the launch of a streaming video service:

Another explanation for the success of Apple's stock on the stock market in 2019 is the launch of a video-on-demand service called "Apple TV+", which has enabled the group to continue diversifying its sources of revenue from services.

Analysts' forecasts for the year 2020 remain positive with buying recommendations based on the excellent sales at the end of the year and beyond the announcements of the group's first 5G telephones, which are likely to mark a major technological leap forward.

Many brokers still advise buying this stock and few are betting on selling it. It should be noted, however, that the analysts' average price target is 268%, which corresponds to a decrease of 8%. It is therefore preferable to wait for this downturn before taking a position on this stock and take advantage of the upcoming rise.

Of course, we advise you to keep an eye on the technical and fundamental analysis of this action.