NEW YORK (AP) – Topeka Capital Markets described Apple’s surge on Monday as “insanely insane”. The company’s share price amounted to $565.73, the highest level to be registered since the all-time record of $705.10 during the iPhone 5 release in September.
The Cupertino, California company has known both ups and downs in the past months, but the Monday’s record reinforced analysts’ belief that Apple could experience an ‘insane’ growth within the following five years. On September 21, Apple’s shares rose to $705.10, registering one of the highest targets of all times. The surge was a little bit unexpected, which is why the subsequent plunge was regarded as a ‘correction’ by analysts at Topeka, whereas the 21 percent downfall registered since September’s record sent the company into bear market.
On Monday, share prices rose 7.2 percent or $38.05 and the company closed with $565.73. The increase was most likely determined by the advent of the holiday season. Customers have been very interested in Apple’s “blockbuster” products, including the recently launched iPad Mini. Topeka Capital Markets analyst Brian White described Apple’s shares sell-off as “insane”, but he sees a positive evolution for the company in the next five years. He estimated that Apple’s earnings per share could grow by 20 percent to 30 percent each year until 2017. White’s calculations were established taking into account the iPhone maker’s low mobile phone and PC sales “combined with growth opportunities in tablets and new potential areas such as Apple TV”.
Apple released a report last month warning investors that the production of new gadgets will most likely pierce into profit during the holiday season. It was the second quarter in a row when Apple failed to meet Wall Street expectations, a situation that was all the more concerning considering that the company did not experience a similar plunge for more than a decade.
The last time Apple recorded a similarly big one-day growth was in May 21. Back then, the stock price gained 5.8 percent allowing the company to close at $561.30.