Apple’s stock reached a record high last week, reaching past $100 a share. Apple is currently considered the most valuable company in the world, not only due to its many successful products, but because of its reputation for innovation and ability to create new markets and deliver new, highly desired products.
Apple’s earnings in the second quarter show slow and steady growth, but didn’t merit its current leap in stock price. Sales for the 9 months ending June 29, 2014, increased 5 percent to $140 billion and profits also increased 5 percent to $31 billion. In comparison, Microsoft reported 11 percent growth in revenue for the year ending on June 30, 2014, to $86 billion.
So what boosted Apple’s stock so rapidly? According to Patrick Chung, partner at California-based venture capital firm New Enterprise Associates, consumers and investors are banking on Apple’s ability to innovate in new areas, like wearables and health care technology. “There’s been a lot of activity in wearables and digital health,” said Chung. “But there is in not yet an iconic consumer brand that has done anything with either one.”