Apple has regained its momentum.
The price of Apple’s stock reached $133.82 in early trading on Monday, coming within $1 of its previous record high of $134.54, set in April 2015. At the end of the day, Apple’s stock closed at $133.29, surpassing its previous record closing price of $133, which was set in February 2015.
This surge in stock value, which pushed Apple (AAPL) to a market capitalization of $700 billion, comes as optimism for the iPhone is reignited.
Goldman Sachs increased its price target for Apple’s stock on Monday, citing the potential addition of “major new features” like “3D sensing” in the next iPhone model, according to an investor note received by CNNMoney.
Apple’s previous record high occurred six months after the release of the redesigned iPhone 6 and 6 Plus, marking the beginning of what CEO Tim Cook referred to as the “mother of all upgrades.”
However, Apple has since departed from its tradition of significantly revamping the iPhone every other year. The current models in the market bear a striking resemblance to the iPhones released in late 2014.
This extended wait, combined with the iPhone’s tenth anniversary, has increased expectations that Apple will undergo a significant smartphone overhaul, sparking a renewed demand.
Related: Tim Cook: ‘Apple would not exist without immigration’
Apple experienced a decline in annual sales in the 2016 fiscal year, the first time since 2001, as iPhone sales, still its dominant source of revenue, decreased for three consecutive quarters.
As a consequence, Apple reduced its CEO’s pay by 15% due to the company’s failure to meet its performance goals for sales and profits.
However, this losing streak has now come to an end.
Apple’s sales began to grow again in the December quarter, driven by a higher demand for the iPhone, particularly for the larger, more expensive iPhone 7 Plus.
The company sold a record-breaking 78.3 million iPhones during the quarter. Some of this success could be attributed to Samsung’s struggles with the recall of its smartphones.
Mark Moskowitz, an analyst with William Blair, stated in an investor note this month, “Samsung’s Note 7 struggles likely helped.”
The iPhone is not the sole reason for Wall Street’s enthusiasm about Apple. There is also President Trump.
Despite Trump’s previous clashes with Apple during the campaign, investors are now optimistic that Apple will benefit from at least one of Trump’s proposals: a reduction in taxes for cash repatriation.
Apple currently holds $230 billion in cash in foreign accounts. If Trump and Congress make it more cost-effective for Apple to bring that money back to the US, it could be used for acquisitions and stock buybacks.
CNNMoney (New York) First published February 13, 2017: 12:24 PM ET
