Shares of Apple Inc. (AAPL, Financial), the top holding of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A)(BRK.B), soared on Tuesday to a new record close as investors cheered the company’s updates from Monday’s Worldwide Developer’s Conference.
The Cupertino, California-based tech giant closed at $366.53, up approximately 2.13% from the previous close of $358.87 and 24.24% from the March-quarter average price of $295.01.
Company announces new operating systems and ditching of Intel chips for new Macs
Apple CEO Tim Cook said that in a “huge leap forward,” the company will install its own chips in future Macs, ending a 15-year run where the computers contained chips made from Intel Corp. (INTC, Financial). CNBC added that the new chips are designed to “provide more performance while using less power.”
The tech giant also announced a new iPhone operating system that allows users to set default email and browser applications, pin widgets on the home screen and organize apps using the “App Library” feature. On the Apple Watch, the latest operating system introduces features that allow users to track sleep patterns for use within the Apple Health application. Additionally, the Apple Watch software includes a timer instructing a user to wash hands for the recommended 20 seconds according to U.S. Centers for Disease Control and Prevention guidelines regarding the coronavirus outbreak.
Apple’s gain propels markets, Nasdaq sets new all-time intraday high
Apple’s gain sent the Nasdaq Composite Index to a new record intraday high of 10,221.85 and a new-record close of 10,131.37, up over 75 points from the index’s previous close of 10,056.48. Likewise, the Dow Jones Industrial Average closed at 26,156.10, up approximately 130 points from the previous close of 26,024.96.
GuruFocus ranks Apple’s profitability 10 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8, a 4.5-star business predictability rank and operating margins that are outperforming 96.41% of global competitors despite contracting approximately 3.4% per year on average over the past five years.
Other gurus cheering on Apple’s newest developments include Ken Fisher (Trades, Portfolio), Spiros Segalas (Trades, Portfolio), Jeremy Grantham (Trades, Portfolio) and Jerome Dodson (Trades, Portfolio)’s Parnassus Endeavor Fund (Trades, Portfolio).
Disclosure: Author is long Apple and Intel.
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