Apple Inc. (NASDAQ:AAPL) shares are biggest winner of President Trump’s first 100 days in office.
Unexpected returns
The performance of Apple was something that was considered uncertain under the era of President Trump. This is because Tim Cook the CEO of Apple had differed with Trump on everything including iPhone encryption, immigration and more. It was also reported that Tim Cook was shortlisted among the likely running mates for Hillary Clinton.
Things have gone against expectations as Trump celebrates the first 100 days in office. So far Apple ranks as the biggest winner of Trump’s presidency, though this is probably coincidental. The shares have made a return of over 20% since Trump was sworn in.
What led to the gain?
Apple’s gain was was precipitated by a great quarterly earnings report, and a growth reputation that attracts dividend-conscious investors. Apple has seen its stock run up around 4 times more than the overall market since Trump was elected president. It has experienced a 29% rise against 14% by Dow returns in that period. Boeing followed Apple closely with its stock up by about 30%.
After the immigration ban was announced against certain Muslim countries, Apple shares declined. The losses were reversed when the company launched the iPhone 7. They managed to sell more than was expected during the holiday season.
Other factors
It is likely that traders believe Apple will be one of the major beneficiaries of the promise to cut down corporate tax rate to 15%., though the cut will likely not even happen. Investors may beleive that the company will be bring most of its income earned abroad back homed due to this cut, even though there is little chance of it passing. This great performance has not hindered Cook from disagreeing with Trump to the extent of threatening to file a legal suit over the immigration ban.
Besides Trump’s influence, other factors that could have boosted Apple’s performance is Berkshire Hathaway Inc. (NYSE:BRK.A) investor, Warren Buffet who has taken bigger and bigger positions in Apple. It has sent the iPhone maker to new all-time highs.
The stock of Apple closed in at $143.65 on April 28 after a fall $0.14 or 0.10%.