Apple Joins Nvidia, Tesla in Top Stock Options as iPhone Maker's Market Cap Nears $4T
$Apple (AAPL.US)$ joined $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$ and $Palantir (PLTR.US)$ in the list for the four most active stock options as the iPhone maker's market cap nears $4 trillion.
Shares of Apple rallied 12% since the end of October, adding almost $400 billion to its market capital amid optimism over the positive impact on tech giants from growing demand for artificial intelligence. That's bigger than the combined market cap of $Uber Technologies (UBER.US)$, $Micron Technology (MU.US)$, and $MicroStrategy (MSTR.US)$.
On Wednesday, Daiwa raised its price target on the iPhone maker to $275 from $255, and maintained its outperform rating on the stock, noting that Apple Intelligence could be the top AI product for cellphones, according to a report on The Fly.
While Apple's record-breaking rally stalled Wednesday, Apple's market cap is still at $3.83 trillion, less than $200 billion away from the key milestone for the world's largest publicly traded company.
Call options that give the holders the right to buy Apple shares at $255 by Friday attracted the most volume, with 28,350 contracts changing hands as of 11:51 a.m. Although the price of the call is down 29% two days before expiration, that comes after 431% gain this month through yesterday.
In total, more than 305,800 Apple call and put options were traded so far across 19 expiration dates that stretch through Jan. 15, 2027. That landed the iphone maker in the fourth slot for the most active stock options.
Daiwa expects a multi-year AI upgrade cycle for iPhone users, likely starting in the fall of 2025 with the launch of iPhone 17. That's because about 80% to 90% of the 1.4 billion active iPhones will not be able to use Apple Intelligence, which is currently available only on 15 Pro and new 16 models.
Still, JPMorgan analysts including Samik Chatterjee, flagged the lower consumer awareness of Apple Intelligence that could hinder a massive upgrade cycle. They noted data from Wave7 Research that shows iPhone 16's market share among cellphone sales across the three carriers was at 66%, compared with 69% for iPhone 15 at this time last year.
"The survey highlights that the lower momentum, reflected in the lower market share y/y, is likely led by the (still) lower consumer awareness for Apple Intelligence, despite expectations for the feature set to be a key driver for an upgrade cycle," the analysts said in a note to clients.
Iphone sales account for more than half of Apple's revenue.
Share your thoughts on Apple and the rest of the stocks mentioned here in the comments section. Do you ever see the company's market cap hitting $4 trillion? If so, when? Let your voice be heard by voting below.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
6091Followers
17Following
17KVisitors
Follow
