Shares rose about 1 percent in early trading before turning slightly negative. If the company’s stock closes higher on Tuesday, Apple will have posted its first 10-day rally since October 2010. Apple shares are up about 8% during the positive stretch.
Slowing demand for Apple’s flagship smartphone, especially in China, had weighed on the company’s stock for months. However, Apple’s position in the critical region is showing signs of improvement after price cuts to the iPhone XR, according to Wedbush analyst Daniel Ives, who raised his price target for the company on Tuesday.
“While there is still ‘wood to chop’ for [Apple CEO] Tim Cook and co., we are seeing more stable iPhone demand trends in the field after a turbulent few months with hurricane-like clouds slowly clearing in China for Apple,” Ives wrote in a note to investors.
Apple’s rally began late last month, shortly after it unveiled plans for several subscription services, including a paid news app and TV streaming service. Earlier this week, Morgan Stanley analysts said Apple’s healthcare initiatives could be worth as much as $313 billion to the company by 2027.