New Apple Price Target After Breakthrough Buried in Live Event
Apple’s new iPhone 17 didn’t inspire investors, but the stock still looks like a winner thanks to another innovation.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
It seems that not everyone was awe-struck by Tuesday’s Apple AAPL event.
Apple used the event, themed “Awe Dropping,” to introduce the iPhone 17. The Cupertino, California-based tech giant also touted the new iPhone Air, the thinnest iPhone yet.
Unfortunately, the new iPhones didn’t generate significant excitement. Critics complained that the new products are similar to previous iterations, offering incremental hardware updates rather than significant advancements.
On the 15-minute intraday chart, we see that Apple peaked at $238.78 at 1:15 p.m. ET (arrow), just 15 minutes into the event. Then the stock reversed course, sliding to $233 over the following 90 minutes. Apple closed at $234.35, down 1.5% for the day.
The Big Picture for Apple
Despite Tuesday's intraday pullback, Apple can still be considered a market leader, as explained here. Over the past month, Apple has handily beaten the market, with shares gaining 15% since August 5. Over that stretch, the S&P 500 has climbed by just over 3%.
Apple has formed a large rounded-bottom pattern (shaded yellow). The formation conservatively suggests that Apple shares could soon reach $260, which would place the stock at a new high for the year.
In addition, the stock’s rising 50-day moving average (blue) appears ready to cross above its rising 200-day moving average (red). This is considered a bullish momentum signal (circled), sometimes referred to as a golden cross.
Watch: What Happens Next?
While the iPhone 17 may not have generated much of a buzz, advances in Apple’s Watch hint at potentially significant breakthroughs in the future.
It’s easy to overlook Watch. Apple doesn’t even break down Watch revenues, instead bundling it with other products in the “Wearable, Home and Accessories” segment. That segment accounts for just under 10% of the company's overall revenues.
While most folks focus on the design and fashion aspects of the product, Watch is slowly beginning to look more like a medical device with every iteration.
Apple’s new Watch Series 11, Watch SE 3 and Ultra 3 now can detect patterns in blood pressure. With eventual FDA approval, the products could become hypertension detectors. The product also has capabilities for sleep tracking, including sleep apnea monitoring.
If we take the long view, the potential is virtually unlimited. Will we eventually see blood glucose monitoring, cholesterol tracking, or cardiovascular disease detection?
As the population ages, such features could become a major draw. Apple’s Watch could eventually become as much of a must-have product as an iPhone.
At the time of publication, Ponsi was long AAPL.
