Apple shares: The biggest one-day boost since 1999
Technology stocks celebrated along with the rest of Wall Street this afternoon: Microsoft was up 18%, Google and Dell more than 14%, and Amazon shares soared 10%.
But the day's trading must have been especially sweet for Apple shareholders. Apple's stock, which had been wallowing at a yearly low, continued the climb it started Thursday. Today, Apple shares jumped to $110.26, up 13%, its biggest one-day gain since 1999, according to the Associated Press.
Of course, Apple was swept up in the market euphoria (the Nasdaq composite closed up more than 11%). But it also received a booster shot of confidence from Sanford C. Bernstein & Co.’s Toni Sacconaghi, who upgraded Apple to "outperform" from "market perform."
OK, he did slash his share-price forecast 23% to $135. Still, he said that Apple's fundamental business was strong, which would have been stating the obvious in any other market climate.
The Apple share-price rally may give the company a little lift for its event Tuesday, where executives will unveil something related to its line of laptops. AllThingsD and others helpfully collected the rumors of what Apple might say. Among them: a MacBook carved from a single brick of aluminum, a new laptop that will cost $800 or less and a tablet-style laptop.
A dramatic price cut would eat into profit, of course. But that would be made up by the increase in the number of Apple buyers. A $800 price tag on a laptop could translate into revenue increasing as much as 69%, said Sacconaghi, as relayed by Fortune.
Whether fish or fowl, we'll be there.
-- Michelle Quinn
Photo: A customer uses a MacBook at an Apple store in 2007. Credit: Paul Sakuma / Associated Press