As the S&P 500 closed at its sixth straight record Thursday, shares of Apple Inc. (AAPL) – Get Report continued to edge higher.
Some see recent action in the shares as a potential harbinger of bigger things to come. Of course, moving the needle on Apple, with a $2.3 trillion market cap, takes some serious effort.
But Real Money’s Ed Ponsi sees reason for hope. After Thursday’s close, Apple shares stand just pennies below their 5-month high, a key point, says Ponsi.
With a close above the level, shares could be ready to break higher, Ponsie argues, as they resume a trend in place prior to the recent period of consolidation.
Even with a 10% surge in recent weeks, Apple is lagging the broader S&P 500, having gained only about 3% this year, vs. a 14.5% gain for the market index.
Amazon.com (AMZN) – Get Report, another of the so-called FAANG stocks, is also trying to brew up some gains, having seen range-bound action in recent months, Ponsi argues. The company proved to be a pandemic all-star in terms of market share and revenue gains. Of course, Amazon moves to its own beat, frequently doubling down on spending whenever it sees a new opportunity to tie customers closer to its retail and web services ecosystems.
Over on Real Money, get more of Ponsi’s insights and investment strategies as he explains why Apple looks like it’s stirring from its months-long slumber and how both it and Amazon could threaten their all-time highs.
In addition, Amazon founder and long-time CEO Jeff Bezos is set formally relinquish his day-to-day role on July 5, the 27th anniversary of the company’s incorporation.
Bezos is set to be succeeded by Andy Jassy, a long-serving executive who oversaw the launch and development of the company’s cloud-computing businesses.
If history is any guide, Amazon shareholders probably needn’t worry too much about the departure of the company’s charismatic leader. Apple’s market cap was $300 billion and change at the time of Steve Jobs’ untimely death in 2011. That’s about about 15% of its current value.
Apple (AAPL) – Get Report shares rose 31 cents, or 0.2%, to $137.27 Thursday.
Amazon (AMZN) – Get Report shares fell $7.19, or 0.2%, to $3,432.97.
Apple and Amazon.com are holdings in Jim Cramer’s Action Alerts PLUS member club.