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Apple (AAPL) Stock Up Over 4% in Pre-Market, Company Is Now Producing Face Masks

Summary:
Today’s pre-market rise of Apple (AAPL) stock follows its CEO’s announcement about designing and producing face shields for medical workers. The company is already in the process of donating over 20 million masks to healthcare professionals. On Friday, the stock of the Big Four technology company Apple Inc (NASDAQ: AAPL) closed 1.44% down at 1.41. Today, the situation has improved, and Apple stock is trading 4.06% up in the pre-market. At the moment of writing, it makes up 1.20 per share.Opinions on the future stock movements have divided. Some Wall Street analysts have taken down their estimates for Apple stock because of the coronavirus pandemic. For example, Morgan Stanley analyst Katy Huberty cut her price target to 8 from 8, which is already the third time she changes her

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Today’s pre-market rise of Apple (AAPL) stock follows its CEO’s announcement about designing and producing face shields for medical workers. The company is already in the process of donating over 20 million masks to healthcare professionals. 

On Friday, the stock of the Big Four technology company Apple Inc (NASDAQ: AAPL) closed 1.44% down at $241.41. Today, the situation has improved, and Apple stock is trading 4.06% up in the pre-market. At the moment of writing, it makes up $251.20 per share.

Opinions on the future stock movements have divided. Some Wall Street analysts have taken down their estimates for Apple stock because of the coronavirus pandemic. For example, Morgan Stanley analyst Katy Huberty cut her price target to $298 from $328, which is already the third time she changes her mind this year. However, Huberty still believes that in the long run, after the coronavirus crisis is over, Apple (AAPL) stock is a good investment.

She said:

“We believe Apple is best positioned to recover to its prior long-term revenue and earnings trajectory in light of industry-leading customer retention rates and a strong balance sheet that enables outsized investment relative to peers, even in a prolonged downturn.”

Wedbush Securities analysts Daniel Ives and Strecker Backe have also cut their price target on Apple stock from $335 to $247.74. They explained it by the possible delay of the new iPhone.

Another expert to cut down Apple’s price target is Krish Sankar from Cowen company. His prediction is lowering to $335 from the previous $370.

Sankar said:

“As the impact of the COVID-19 virus shifts from supply chain to end-market demand uncertainties, we are lowering our medium-term forecasts primarily on lower iPhone and iPad device sales.”

Meanwhile, there are also those who believe Apple stock will rise as the company will manage to sell its new iPhone. Those optimists are counting on Apple’s ability to innovate as the premium factor driving the company’s growth. Such an outcome is possible if the coronavirus pandemic will end at the earliest.

Apple to Produce Face Masks for Medical Workers

Today’s pre-market rise of Apple stock follows its CEO’s announcement about designing and producing face shields for medical workers. According to Tim Cook, Apple will produce as much as 1 million face shields per week. Besides, Apple is now in the process of donating over 20 million masks to healthcare professionals.

Last week, Kaiser Permanente hospital facilities in California’s Santa Clara Valley was the first to receive Apple’s face.

Tim Cook stated:

“We’ve launched a company-wide effort, bringing together product designers, engineering, operations and packaging teams, and our suppliers to design, produce, and ship face shields for health workers.”

The packages of Apple’s face shields are flat, there are 100 masks in a box. Initially, shields will be shipped across the United States, but Apple has promised to expand distribution globally.

Business, Editor's Choice, Markets, News, Stocks
Daria Rud
Author: Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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