IMPORTANT TO KNOW
There are stock market giants that, even in an era of global economic instability, have shown steady growth. Those companies were Amazon.com (NASDAQ: AMZN), which made its highest close, and Apple (NASDAQ: AAPL), which was much cheaper, but not prevented from making a 52-week high. Let’s take a closer look at each of these companies.
Amazon shareholders turned a profit
Last Tuesday, the company’s stock gained five percent, bringing the value of the world’s leading e-commerce company to nearly $1.85 trillion, which sent the stock’s stock price soaring.
The reason was the announcement of the U.S. government about the possibility of revising the rules of key contracts. For example, in 2019, the Defense Department selected Amazon’s competitor, Microsoft, as a favorite to contract for an infrastructure project. But, the Pentagon said that with the growing porteousness, the contract requirements are also growing and cancelled the contract unilaterally, affecting the rise of one company’s stock and the decline of the other’s stock price.
Since there are only two companies in the world market that could satisfy the U.S. government, and Microsoft dropped out of the race, it would be logical to assume that Amazon would be the main and only contender for the contract. Of course, Microsoft will still have a piece of the pie, but the battle has already been won.
Although the amount of the contract is not small, according to our data, it is about 10 billion, but for the giant Amazon, it is a drop in the ocean, and the benefit is likely to be reputational.
Apple shows growth
Meanwhile, the rise in capitalization of the second giant of the U.S. market, Apple, has led to a 1.5 percent rise in its stock price. This is not an absolute record for the company’s securities value, but it has brought the value as close as possible to its January high. That means more records are on the horizon.
At the end of winter – beginning of spring there was a decline in the share price of the company due to investors’ concerns about the future of the 5G technology, which was actively used in the construction of the novelty iPhone 12, although, for the smartphone itself there were no complaints. The concern was whether the fifth-generation networks will have time to spread around the world, because the market for the new model depends on it directly.
Now investors are waiting for the new iPhone13, there is no full understanding of the functionality of the novelty, but the crowds of fans are already beginning to save money for a dream smartphone.
This level of appreciation from the army of fans is the key to Apple’s success and the very engine that will help provoke further growth of the giant’s stock price. Investors expect the company’s capitalization to grow to $3 trillion or more.