Two was the magic number this week as the Nasdaq hit record highs twice, Apple’s market capitalisation topped 2$ trillion and Tesla shares closed above $2000 for the first time!
The gains witnessed across US equity markets were certainly encouraging but given the state of the global economy and uncertain outlook, the current rally could be misleading. Expect the sharp recovery in stocks over the past few months to massage the egos of equity bulls. However, this may end up reviving fears about the widening disconnect between Wall Street and Main street.
Is Apple at $2 trillion sustainable?
So check this out, it took Apple 42 years to reach $1 trillion in value but only two years to get to $2 trillion…
To be fair, the company performed incredibly well during the second quarter of 2020 with revenues rising 11% as consumers unable to spend cash on experiences binged on digital gadgets instead. But some still remain weary about Apple’s explosive rise because other than new iPhone models, upgraded AirPods and Apple TV, the company has not done much new over the past two years.
Taking a look at the technicals, Apple shares are up over 65% year-to-date! Prices are trading around $492.00, less than $1 away from the all-time high of $ 492.95. If the upside momentum rolls over into the new trading week, Apple bulls may challenge the psychological $500 level.
Tesla shares blast “through the roof”
Tesla Inc. stocks were the talk of town after closing above a record high of $2000 on Thursday, pushing the company’s market cap to $370 billion!
2020 has been a phenomenal year for Tesla, with the company’s shares gaining almost 400% year-to-date. Last month, the company announced a pretty decent second-quarter profit of $104 million. With the five-for-one stock split potentially sending prices, better fasten your seatbelts and prepare for more volatility and action.
Tesla is trading above $2050 as of writing. A weekly close above $2000 could inject bulls with enough confidence to attack $2100.
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