Apple Inc. shares experienced a significant surge in value, marking their best one-day performance in over four months. This rise came after an analyst warned potential short sellers to exercise caution in light of strong indications of demand for the iPhone 15.
The analyst, Mizuho's Jordan Klein, emphasized that although it is still early in the launch of the iPhone 15, current sentiment and positioning in the market are overwhelmingly negative and short. Klein suggested that even slight delays in delivery times, primarily caused by supply issues rather than customer demand, could potentially drive AAPL stock higher in the coming weeks and months.
Early signs of demand for the iPhone 15 are promising, with some models, such as the iPhone 15 Pro Max, already showing delivery dates extending into November. This would mark the longest wait time in the past seven years. Additionally, concerns over reported bans on iPhone use among Chinese government officials for business purposes have proven to be better-than-feared, with delivery times to China appearing to be unaffected.
While Klein remains cautious about the near-term outlook for AAPL, he advises against taking a short position due to these promising iPhone 15 data points.
Notably, Apple shares were up by 2.25% during Monday afternoon trading. This increase puts them on track for their largest single-day percentage gain since June 30, 2023, when they rose by 2.31%. Earlier in the session, the stock had surged by as much as 2.50%, which would have represented its largest one-day gain since May 5, 2023.
On the other hand, BofA analyst Wamsi Mohan adopted a more cautious stance on iPhone 15 preorder trends. While acknowledging that shipping dates for the iPhone 15 Pro and Pro Max models have been extended compared to last year, Mohan believes the average wait time is somewhat lower at this stage of the preorder cycle. Mohan maintains a neutral view on Apple shares, as the positive impact of new product introductions is potentially outweighed by a weaker consumer spending environment.
In conclusion, the surge in Apple shares signals positive market enthusiasm in anticipation of the iPhone 15 release. However, caution is advised for short sellers due to strong demand indications and potential supply issues.
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