Please ensure Javascript is enabled for purposes of website accessibility

Why Apple Stock Jumped Today

By Evan Niu, CFA - Mar 13, 2020 at 1:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A Wall Street analyst says it's time to buy Apple shares as the company continues to grapple with the coronavirus pandemic.

What happened

Shares of Apple (AAPL 1.75%) have jumped today, gaining as much as 7% but currently up 4% as of noon EDT. The broader market is rebounding from yesterday's historic sell-off over the ongoing novel coronavirus pandemic, and a Wall Street analyst also issued a call to buy Apple shares.

So what

Apple has now reopened all 42 of its stores in China, Bloomberg reports. The company had closed its retail locations while the coronavirus outbreak was ravaging China, but the Middle Kingdom has taken extraordinary steps to curb the disease, and they seem to be working: The number of new cases in China continues to decline. However, the virus is now spreading like wildfire in Italy, which is now among the hardest-hit countries outside of China. The tech giant has closed all 17 of its Apple Stores in Italy indefinitely.

Illustration of a MacBook with stickers on it

Image source: Apple.

Separately, the Mac maker announced this morning that it would host its annual Worldwide Developers Conference (WWDC) in June as an online event. "The current health situation has required that we create a new WWDC 2020 format that delivers a full program with an online keynote and sessions, offering a great learning experience for our entire developer community, all around the world," marketing chief Phil Schiller said in a release.

Now what

Wells Fargo analyst Aaron Rakers also upgraded his rating on Apple shares from equal weight to overweight, while maintaining a price target of $315. Rakers is confident that the company will be able to weather the coronavirus crisis and that shares will recover within the next year or two. Continued growth in the services business will help sustain higher valuation multiples, and Apple has considerable flexibility with its capital returns.

The wearables segment is also booming and represents an "incremental growth driver," and the analyst argues that the stock remains "relatively under-owned."

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$139.85 (1.75%) $2.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.