Apple has found its rhythm again.
Shares of the iPhone maker hit $133.82 in early trading on Monday, putting Apple less than $1 away from its intraday high of $134.54, reached in April 2015. Apple shares ended on the day at $133.29, surpassing its previous record closing price of $133, set in February. 2015.
Rising stocks, pushing Apple (AAPL) at a market capitalization of $700 billion, comes amid renewed optimism for the iPhone.
Goldman Sachs raised its price target for the stock on Monday, citing the likelihood of “major new features” like “3D sensing” being added to the next iPhone model, according to an investor note provided to CNNMoney.
Apple’s previous high was set six months after it launched the redesigned iPhone 6 and 6 Plus, kicking off what CEO Tim Cook described as the “mother of all updates”.
Since then, however, Apple has broken its tradition of renewing the iPhone every two years. The newest models on the market today look almost identical to the iPhones available in late 2014.
The long wait, combined with this year’s 10th anniversary of the iPhone, has only raised expectations that Apple is about to significantly overhaul its smartphone and reignite demand.
Related: Tim Cook: ‘Apple wouldn’t exist without immigration’
Apple’s annual sales fell in fiscal 2016 for the first time since 2001, as iPhone sales, which remain the majority of its business, declined in three consecutive quarters.
Apple even reduced its CEO’s salary by 15% as the company failed to meet its performance targets for both sales and profits.
But that bad streak has just ended.
Apple’s sales began growing again in the December quarter, driven by increased demand for the iPhone, particularly the larger and more expensive iPhone 7 Plus.
The company sold 78.3 million iPhones during the quarter, setting a new record. At least part of that may be due to Samsung’s smartphone recall issues.
Mark Moskowitz, an analyst at William Blair, wrote in a note to investors this month: “Samsung’s Note 7 problems probably helped.”
The iPhone isn’t the only reason Wall Street is excited about Apple. There is also President Trump.
Even though Trump clashed with Apple during the campaign, investors are now optimistic that Apple will benefit from at least one Trump proposal: cutting taxes on the cash that American companies bring in from their offshore accounts.
Apple currently has $230 billion in cash in offshore accounts. If Trump and Congress make it cheaper for Apple to get that money back, it could be used for acquisitions and buybacks.
CNNMoney (New York) First published February 13, 2017: 12:24 pm ET
