Apple shares set for the longest winning streak since 2003

Apple shares are heading for their longest winning streak since 2003, when the iPhone hadn’t even launched and Nokia Oyj was still one of the top cellphone makers in the world.

Shares in the world’s largest company rose 0.2 per cent premarket on Tuesday, extending gains to the 11th straight day – a rare feat in its 41-year stock market history. During the streak, it has added $407bn in market value, roughly the size of Walmart.

Leading the charge in big technology stocks bouncing back after a dismal start to 2022, Apple has seen its earnings estimates being upgraded by 7.2 per cent this year by analysts, much faster than other stocks in the Faang group. Shares have also managed to dodge a Nikkei report about production cuts, leaving the stock just 1 per cent away from covering 2022 losses.

The rally in big tech even as 10-year Treasury yields reached 2.5 per cent has left investors scratching their heads. The Cupertino, California-based company is perhaps living up to its reputation as a relative haven in a turbulent time for tech.

For sales trader Jim Dixon at Mirabaud Securities, it’s the mom-and-pop investors behind the stunning rally. “Quite remarkable for a company trading on more than 28x forward earnings in a rising rates environments with supply chain issues/inflation,” he said.

Dixon also pointed to the implied volatility of the stock, which is at a discount to realised, commenting that “investors are effectively saying that it is smooth sailing going forward.”

What’s more, on Sunday Apple bagged Best Picture Oscar for “CODA,” becoming the first streaming service to win Hollywood’s top award, beating out streaming pioneer Netflix.