Apple sees best week since July 2020, reason is CEO Tim Cook in ...
Apple's stock soared 13% this week, marking its largest weekly gain since July 2020, driven by a high-profile White House appearance byApple CEO Tim Cook alongside President Donald Trump. Yes, and also on the back of the company's robust quarterly earnings. The iPhone maker's shares climbed 4% on Friday (August 8) alone, closing at $229.35 per share, boosting Apple's market capitalization by over $400 billion to a staggering $3.4 trillion.
The jump in Apple stock has been triggered by CEO Cook's visit to White House on Wednesday (August 6) this week. Tim Cook joined Trump at the White House to unveil Apple's ambitious commitment to invest $100 billion in American companies and domestically produced components over the next four years. A key focus of the announcement was Apple's plan to increase its procurement of America-made chips, a move that aligns with President Trump's push for domestic manufacturing. During the public meeting, Trump praised Apple's initiative, declaring that the company's U.S. investments would exempt it from proposed tariffs that could double the cost of imported chips. This assurance alleviated investor concerns about potential financial headwinds from Trump's trade policies, which had loomed over Apple for months.
A rally for Apple led Wall Street higher on Wednesday as U.S. stocks reclaimed more of their sharp losses from last week. The S&P 500 rose 0.7%. Apple alone accounted for more than a third of the S&P 500's gain. It rose 5.1% ahead of a White House event where it announced an additional $100 billion over the next four years.
During its earning call last week, Apple had cautioned that it anticipated over $1 billion in tariff-related costs for the current quarter if no exemptions were granted. The White House agreement significantly mitigates this risk, positioning Apple to maintain its profitability while strengthening its domestic supply chain. 'Apple and Tim Cook delivered a masterclass in managing uncertainty,' wrote JP Morgan analyst Samik Chatterjee in a note, as reported by CNBC. 'After months of overhang from potential tariff challenges, this strategic alignment with U.S. priorities is a game-changer.'
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The market's enthusiasm was further fueled by Apple's strong financial performance. Two weeks ago, the company reported a stellar June quarter, with overall revenue surging 10% year-over-year to $94.9 billion, surpassing Wall Street expectations. iPhone sales, a cornerstone of Apple's business, grew 13% to $46.2 billion, driven by robust demand for the iPhone 15 series and expanding market share in emerging regions like India and Southeast Asia. The services segment, including Apple Music and iCloud, also contributed significantly, posting a 14% revenue increase to $24.2 billion, underscoring Apple's successful pivot toward high-margin, recurring-revenue streams.
Beyond tariffs and earnings, Apple's stock rally reflects growing investor confidence in its long-term strategy. The company's focus on American manufacturing could bolster its resilience against global supply chain disruptions, while its innovation pipeline—spanning augmented reality, artificial intelligence, and health-focused wearables—continues to excite analysts. Additionally, Apple's recent expansion of its U.S. workforce, with plans to create 20,000 jobs by 2028, further aligns with national economic priorities.
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