The stock price of tech giant Apple (NASDAQ: AAPL) is recovering after experiencing several challenging months in 2024.
The S&P 500 this year had its best May since the rip-roaring days of 2020, rising 4.8% over the month. However, much of that gain came at the beginning of the month as Wall Street cheered encouraging economic data and a slew of earnings reports showing the resilience of corporate earnings.
Apple expects to return to growth in the June quarter, and there is a good chance its growth will keep getting better. The smartphone market's recovery and the quick adoption of AI smartphones will be tailwinds for this tech giant.
While macro-related issues are a factor, it's company-specific issues that play a more significant role in causing shares from top companies to become blue-chip stocks to sell. Some company-specific issues can be out of management's control.
Apple holds its annual Worldwide Developers Conference from June 10 through June 14. The company is expected to announce software updates -- and this could include Apple's moves in the high-growth area of artificial intelligence.
AI's "fantastic five" are Microsoft, Apple, Nvidia, Alphabet, and Amazon. Three key prerequisites must be met for these stocks to reach a combined market cap of $25 trillion by 2030.
The S&P 500 just stormed ahead to its best May in years, but the rally was highly concentrated in just a handful of stocks, as the richest stocks continued to get richer and the middle class got, well, richer but at a slower pace.
Nvidia could soon surpass Apple to become the world's second-most valuable company, as the biggest beneficiary of the surge in adoption of AI applications takes on the iPhone maker that has been the largest Wall Street firm by market value for years.
The economy looks robust, so investing in a schedule is a wise choice. Job growth is strong, wages are increasing, and the stock market is buoyant.
Apple reported a sales decline last fiscal year. Unless the company can introduce another revolutionary product, growth will be muted.
Apple stock gained 48% last year, but has stagnated in 2024 due to lackluster iPhone sales and an unclear artificial intelligence (AI) strategy. The company is expected to unveil AI functionality for the iPhone at its Worldwide Developer Conference (WWDC), which could restore investor confidence and spark the stock's next move higher.
At the end of each month, I run a scan on stock and ETFs to look for the formation of new doji buy or sell signals. Dojis are formed when the opening and closing prices are close together.