Investors massively increase their bets on Apple pushing Market Share to all time high - Alldamoney

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Investors massively increase their bets on Apple pushing Market Share to all time high

DA Money Maker - Apple stock closed at an all-time high on Tuesday (Feb. 14), trading at 135 after Goldman Sachs and UBS raised the stake, to a strong buy.

Goldman Sachs raised its target price for the stock to $138 pointing to Apple’s 3D sensing technology. While UBS after considering the company's large user base and high retention rate reiterated Apple’s buy rating and price target, suggesting the services business is likely undervalued.

At this price, Apple’s market value is about $700 billion, more than $120 billion ahead of the number two company, Google parent Alphabet according to the Wall Street Journal.

Investors believe that the tenth anniversary of the iPhone, expected later this year will add to the momentum around the company presently.
UBS Analyst Steven Milunovich in a note to clients wrote, Although Apple is “tied to hardware, [its] services probably [are] undervalued,” “We consider the installed base and retention rate the primary drivers of device and services value, If Apple services were valued similarly to PayPal, the stock would be at least 10 percent higher.”

Warren Buffett’s Berkshire Hathaway since the election has been buying the stock. In a recent interview Buffett told Charlie Rose that he loaded up on $12 billion worth of a stock since the election through the end of January, though he didn’t specify the stock he purchased as at them. However, during the fourth quarter, Berkshire released a report showing its total position on the stock is valued at more than $6.6 billion by the end of 2016 that’s almost 1.09% of the company’s stock.

While the market is eagerly awaiting the iPhone 8 which, according to KGI Securities analyst Ming-Chi Kuo, is going to be a game changer for Apple.
According to market leaks the phone comes with an all new design, a dramatically improved battery life and a superb compact form factor.

In summary, investors are buying apple because they expect an increase in the future market price. But compared with two years ago Apple's R&D is at an all-time high. To get more from apple the company need cut back on total amount spent on research.

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