As Apple Inc. kicked off its highly-anticipated “Spring Forward” event in San Francisco Monday, shares jumped more than 2 percent to $129.57 in afternoon trading. Chief Executive Officer Tim Cook formally unveiled the final features of the Apple Watch, the company’s first product developed under Cook.
Ahead of the launch, shares of Apple hovered around $127.17 at 1 p.m. EDT, but gained more than 2 percent to $129.22 after the company unveiled a new thinner, lighter MacBook. Cook also announced the company has reduced the price of Apple TV to $69 from $99, and that the company will be an exclusive partner with HBO Now starting in April. The CEO also said every major car brand has committed to delivering Apple Car Play, including more than 40 new models of new cars shipping after the announcement of car play.
The trajectory of Apple’s stock during the event followed a typical pattern. However, noted Adam Sarhan, CEO of Sarhan Capital: “If this event lacks the wow factor, typically the stock sells off in the immediate and in the short term future.”
The launch comes as the tech giant prepares to replace AT&T Inc. on the Dow after the close of trading on March 18. During the event, the S&P 500 stock index added 12.15 points, or 0.59 percent, to 2,083.31. The Nasdaq composite index rose 21.75 points, or 0.44 percent, to 4,948.89.
Apple’s stock has had a momentous run over the last few months, hitting a recent all-time high of $133 in February after the world’s most valuable company set a new milestone last month, marking the first time a company has ever hit a market capitalization of more than $700 billion. Apple posted quarterly earnings Jan. 27 that smashed Wall Street expectations, with 74.5 million iPhones sold during the holiday quarter, another record for Apple. The company also reported a record-breaking profit of $18 billion.