Why buy Apple stock in January?

Shares of Apple (NASDAQ: AAPL) are up 74.2% since the beginning of the year despite this year being marked by the quickest ever selloff in equities amid the pandemic. Still, investors are likely to continue investing in Apple stock as 2021 could be a “super year” for the tech giant. 

Fundamental analysis: New products unveiled, ambitious iPhone target set

Apple launched a new feature called “Fitness+” which aims to enter the online workout market. Powered by Apple Watch, a new subscription-based fitness app is available on  iPhones, iPads and the Apple TV.

Fitness+,  which can be used by up to 6 family members, costs $9.99 per month or $79.99 per year with some discounts available for Apple Watch buyers.

Elsewhere, a report in Nikkei Asia stated that Apple is preparing for a record 2021 in terms of iPhone shipments. The tech giant plans to produce up to 96 million iPhones for the first half of 2021, representing an almost 30% year-on-year increase.

For the full-year, these numbers would translate to up to 230 million iPhones including both old and new models.

The Nikkei report prompted Wedbush analyst Daniel Ives to reiterate his thesis of a “supercycle”.

Ives rates AAPL as “Outperform” with a price objective set at $160.00.

Technical analysis: New record highs targeted

Shares of Apple gained a further 5% on Monday to increase monthly gains to 7.4%. Going forward, the Apple buyers are likely to push for a new record high above $138. 

More specifically, Fibonacci extension targets on the upside are $147.50 and $160.00, which will be primary targets for buyers in the months to come. 

Summary

Apple stock price has continued to rise yesterday after the launch of Fitness+ and a news report that the tech giant is preparing to ship 30% more iPhones in 2021.