SAN FRANCISCO: Apple Inc shares hit an intraday record high on Tuesday for the first time almost two years as investors raised bets that a 10th anniversary iPhone will boost lackluster sales.
The stock was up 1.2 percent at $134.90 at midday, beating its previous intraday high of $134.54 set on April 28, 2015. The S&P 500's largest component has climbed 50 percent from lows in the first half of last year and is up 16 percent so far in 2017, with many investors betting that Apple will mark the iPhone's 10th anniversary with a dramatically improved model.
Many on Wall Street also believe that strong sales of the iPhone 6S two years ago have left a larger-than-normal base of customers ready to upgrade.
The Cupertino, California, company reported strong December-quarter results on Jan. 31. Although it gave a cautious outlook for the current quarter, Wall Street expects revenue to grow this year after sinking nearly 8 percent in fiscal 2016.
Apple's stock recently traded at 14.3 times expected earnings, the highest level since April 2015 and significantly higher than the average price-earnings ratio of 12 over the past five years, according to Thomson Reuters Datastream.
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