2020 has been an interesting year in the markets, to say the least. It’s been a year of surprises and rollercoaster rides, mainly thanks to the ripple effects of the COVID-19 pandemic. While many companies have experienced major downturns, some companies have shown incredible resilience and agility in the midst of uncertainty.
It should come as no surprise that one such example is tech giant, Apple. It’s been a noteworthy year for the company, with record highs and unexpected developments. Epic Games might have put a spanner in the works for Apple’s 2020 plans, with their lawsuit against the company and impending tech war in the making. However, so far, Apple has remained resilient and continues on its upward trajectory in the markets, although it experienced a decrease in September. A few interesting developments over 2020 have now led to investors paying close attention to the tech behemoth. Want to know more? Continue reading this iFOREX shares news article.
Despite the turmoil of the pandemic and limited company growth, Apple (AAPL) stocks are up by over 50% this year.1 While the tech giant’s revenue has risen less than 5% for most of the last 8 quarters, in 2020 Apple revenue rose by 9% in Q1 and 11% in Q3, year on year.1 In fact, Apple is doing so well that it topped $2 trillion in market value, making it the first public US-traded company to achieve this.2 The company seemed to benefit from the virus-induced lockdown measures implemented in many countries, even though 25% of their physical stores closed worldwide, Apple’s online sales picked up the slack to strengthen revenue.3
In August, the tech company announced a 4-for-1 stock split, which means that investors will get 3 shares extra, for every single share that they own.4 Essentially, a split in stocks means that the company has more stocks, at more affordable prices, which is great news for those looking to buy shares in Apple or trade in the company’s stocks.5 The affordability aspect creates an opening for smaller, individual investors to get a piece of the Apple pie, and increases the demand for stock.6 Daniel Morgan, a senior portfolio manager at Synovus Trust Co said that the split helps “set the stage for a strong calendar year finish for Apple,”.4 Soon after the split occurred, Apple’s shares jumped up by nearly 6% in after-hours trading, which means that the split seemed to be received well by investors.4
Apple seems to remain resilient as the company retained its $2 trillion market cap in September, despite a slump in the market.5 While Apple shares did experience a drop between September 2nd and 3rd, they remain relatively high.