Apple has advanced 13% 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 84%
rally in 2020 compared to Amazon’s 80% increase. The S&P 500 is up 15% 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 $138.79
before closing with a 1.3% decline. The Cupertino, California-based company is
trading at 34 times projected 2021 profit, up from 10 at the beginning of 2019.
Amazon is valued at 56 times estimated earnings.
©2020 Bloomberg L.P.