Apple Inc. shares rallied to an intraday record on Tuesday, continuing a year-end surge that’s cemented its lead over Amazon.com Inc. as 2020’s best-performing of the largest technology stocks.
Apple has advanced 16% in December amid signs of strong demand for its iPhone 12 models and optimism about its self-driving car efforts. The gains propelled Apple past Amazon with an 87% rally in 2020 compared to Amazon’s 79% increase. The S&P 500 is up 16% this year.
Wall Street has grown increasingly bullish on Apple’s prospects in the coming year with analysts projecting that a recovering economy will fuel even more demand for iPhones, wearables such as Airpods and services. Apple’s revenue growth is expected to increase to 15% in fiscal 2021 from 6% in 2020, and profit growth is projected to double to 20%, according to data compiled by Bloomberg.
After enjoying a boom in e-commerce sales this year, Amazon is expected to see slower expansion in 2021. Revenue is projected to climb 19% in 2021 after expanding at an estimated 35% clip in 2020.
Apple rose as much as 1.5% to $138.70, giving it a market capitalization of about $2.3 trillion. The Cupertino, California-based company is trading at 35 times projected 2021 profit, up from 10 at the beginning of 2019. Amazon is valued at 56 times estimated earnings.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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