Apple shares surge past Amazon, hit new record in 2020

Currently, Apple uses parts from Qualcomm for the latest iPhones with 5G. (Image: Reuters)

Apple shares briefly rallied to an intraday record on December 29, continuing a year-end surge that's cementing its lead over Amazon as 2020’s best performer among the larger tech stocks.

The Cupertino-based tech giant advanced 13 percent in December amid the growing demand for the iPhone 12 models and optimism surrounding its self-driving car efforts. The gains propelled Apple to an 84 percent rally in 2020, pushing it past Amazon’s 80 percent increase. The S&P 500 is up 15 percent this year.

Wall Street has grown increasingly bullish on Apple’s prospects in the coming year, with analysts projecting that a recovering economy will fuel even greater demand for Apple devices – iPhones, Macs, wearables – as well as Apple’s services.

Additionally, the tech major is expected to see an increase to 15 percent revenue growth in fiscal 2021 from 6 percent in 2020. According to data compiled by Bloomberg, Apple’s profit growth is also projected to double to 20 percent.

Apple rose as much as 1.5 percent to $138.79 before closing with a 1.3 percent decline. The company's scrip is trading at 34 times projected 2021 profit, up from 10 at the beginning of 2019.