The Resolute Mining Limited (ASX: RSG) share price is down 22.9% since 27 July, despite gaining 1% in late afternoon trading today. That gives Resolute the ignoble position as the third worst performer on the S&P/ASX 200 Index (ASX: XJO) for the past month.

The ASX 200, by comparison, is up 1.3% over that same time.

Year to date, the Resolute Mining share price was in positive territory as recently as last Tuesday 18 August. Since then, it’s fallen sharply, leaving Resolute’s shares down 10.5% in 2020.

Like most shares on the ASX, Resolute shareholders were ravaged by the COVID-19 market rout earlier this year. From 24 February through to 16 March, the Resolute Mining share price fell 50%.

Despite the past month’s losses, Resolute’s share price is still up 79% from that March low.

What does Resolute do?

Resolute is a miner exploring for gold, and developing and operating gold mines in Australia and Africa. To date, Resolute’s mines have produced more than 8 million ounces of gold.

The company’s premier gold mine is its Syama Gold Mine in Mali, capable of producing more than 300,000 ounces of gold annually. Resolute plans to commence using an automated mining system at Syama which should decrease costs and improve output. Its second high quality gold mine in Senegal, the Mako Gold Mine, can produce around 140,000 ounces of gold per year. The company is also active in Ghana. 

Resolute shares first traded on the ASX in 1999.

Why is the Resolute share price down 23% over the past month?

Resolute isn’t the only ASX 200 gold producer seeing its share price tank over the last month.

The Gold Road Resources Ltd (ASX: GOR) share price is down more than 18% since 27 July, and the Saracen Mineral Holdings Limited (ASX: SAR) share price is down over 19%.

And it’s not just them. Three other ASX 200 gold shares make the list of worst 10 share price performers for the past month.

Gold’s 6% drop from its 6 August peak hasn’t helped the gold miners. Though today’s price of US$1,943 per troy ounce is right where gold was trading on 27 July. Some of the price falls can be blamed on disappointing guidance for the year ahead, or disappointing results for the year gone by.

But Resolute ran into a stickier problem this month when Mali’s president, Ibrahim Keïta resigned on 19 August. With the potential for political turmoil in Mali — where Resolute operates its premier Syama Gold Mine — investors were quick to hit the sell button. Resolute’s share price is down over 18% since then.

Looking ahead, Resolute Mining’s CEO, John Welborn, is hosting two conference calls for investors, analysts and the media tomorrow, 28 August, to discuss Resolute’s half year results for the year ending 30 June.

The Resolute share price will be one to keep any eye on tomorrow following those calls.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mach7 Technologies Ltd (ASX: M7T) share price is up almost 5% higher today after delivering its first full year profit result.

The company develops innovative enterprise imaging and informatics solutions for image viewing, storage, and workflow management. 

What were the FY20 results?

The company has delivered an increase in revenues of $18.9 million, up 102% on the prior corresponding period (pcp). This was driven mainly by higher software licence fees. 

Earnings before interest, taxation, depreciation and amortisation (EBITDA) was $3.3 million, up 181% compared to the pcp. 

Mach7 delivered positive free cash flow, up 225% to $4.7 million. The company said the acquisition of Client Outlook demonstrated the scalability of the business and enabled less reliance on investor funding.

The company’s successful completion of a cost-reduction program was a key contributor to profit.

Sales orders were up 115% as a result of 29 new sales order contracts. These were from new and existing customers who ordered licence extensions, expansion licences or new products.  The 29 orders have contributed $13.3 million to the group’s revenues.

Furthermore, contracted annual recurring revenue (CARR) has increased to $9 million, representing growth of 14% on the pcp. However, CARR growth was impacted by delayed purchasing decisions in 2H20 due to the coronavirus pandemic.

Outlook for Mach7

Mach7 Technologies expects the growth in CARR to resume and even accelerate during the 2H21 due to expected increased demand. This is reflected in the sales pipeline. 

In light of the Client Outlook purchase, the company is well-positioned for continued profit growth in a substantially larger addressable market. It’s now a clear market leader in the provision of complete enterprise imaging solutions. 

Mach7 Technologies is in a strong financial position with more than $15 million cash in the bank and is debt free. In the future, it expects to deliver continued double-digit revenue growth, EBITDA growth and positive free cash flows. 

Mach7 CEO Mike Lampron said Mach7 was well-positioned to continue delivering great outcomes for customers, employees and investors.

“I am proud of what the Mach7 team has achieved this year – from new customer deployments of our software, the recent acquisition and early integration of Client Outlook, to delivery of proftable high growth earnings and positive free cash flow,” he said.

After surging to a high of $1.15 in early afternoon trade today, the Mach7 Technologies share price is currently trading at $1.10, up 4.76% at the time of writing. It has a market capitalisation of $263.7 million.

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Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This morning the Coles Group Ltd (ASX: COL) share price traded ex-dividend for its upcoming 27.5 cents per share fully franked dividend.

Eligible shareholders can now look forward to being paid this dividend in just over a month on 29 September.

While many shareholders will no doubt use these funds as a source of income in this low interest rate environment, others may wish to reinvest them into the share market.

But which shares should you reinvest these funds into? Here are a couple to consider:

Dicker Data Ltd (ASX: DDR)

If you’re interested in earning more income in the future, then you might want to consider buying Dicker Data shares. It is a leading wholesale distributor of computer hardware and software in the ANZ region. It has been an exceptionally strong performer in FY 2020 thanks to a surge in demand for remote and virtual working solutions.

This has put the company on course to deliver stellar profit and dividend growth in FY 2020. Pleasingly, due to its strong market position, favourable tailwinds, and its growing number of vendors, I believe its growth can continue for the foreseeable future. Based on the current Dicker Data share price, it offers investors an attractive forward 4.7% fully franked dividend yield.

Xero Limited (ASX: XRO)

Those looking to reinvest these funds into growth shares might want to consider Xero. It is one of the world’s leading cloud-based business and accounting software providers. I’ve been very impressed with the way the company has consistently grown its sales and subscriber numbers at a strong rate over the last few years. This was once again the case in FY 2020, with Xero delivering more explosive growth.

A 26% jump in subscribers to 2.285 million underpinned a 30% increase in operating revenue to NZ$718.2 million and a 29% lift in annualised monthly recurring revenue (AMRR) to NZ$820.6 million. The good news is that Xero still has a very long runway for growth over the next decade. Especially given its modest market share in the United States market. At the end of FY 2020, Xero had just 241,000 subscribers in North America. This compares to 914,000 subscribers in a significantly smaller ANZ market.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are a number of defensive ASX shares that I’d be happy to buy for my portfolio.

However, plenty of them are trading quite expensively, so I’d only want to buy businesses that are trading at a good price.

Here are three quality ASX share options:

TPG Telecom Ltd (ASX: TPG)

It’s now one of Australia’s biggest telecommunications businesses. TPG and Vodafone Australia recently merged – the combined business now has a strong presence in both home internet and mobile connections.

The combined business should be able to extract pleasing cost synergies. One big bonus is that it only needs to build one 5G mobile network, rather than two. The business will also be able to cross-sell its mobile offering to broadband customers, and the broadband customers can be offered a mobile deal.

Telecommunications is a defensive industry, so TPG could be called a defensive ASX share with steady monthly revenue from customers.

I think TPG could become the most efficient big telco with the influence of the former TPG business. The combined business plans to pay out larger regular dividends for investors, which will boost total returns.

TPG’s share price has fallen 9% since 30 June 2020, so this could be a good time to buy. 

Magellan Global Trust (ASX: MGG)

Magellan is a listed investment trust (LIT) which is focused on global shares. The LIT is operated by the high-performing Magellan Financial Group Ltd (ASX: MFG).

It aims to invest in the highest-quality shares in the world. It doesn’t go for ASX shares. Some of its biggest investment include technology companies like Alibaba, Alphabet, Microsoft, Tencent, Facebook, Visa and Mastercard. These businesses are in the right industries to weather the terrible global impacts of COVID-19.

However, Magellan Global Trust also owns a number of defensive positions to protect the portfolio against negative market movements. Magellan Global Trust owns businesses like Atmos Energy, Eversource Energy, Xcel Energy and Reckitt Benckiser.

At the end of July 2020 it had a relatively large cash position to defend against downside market movements. It had a cash weighting of 18% at 31 July 2020. 

Its net returns over the longer-term have been quite strong. Since inception its portfolio has produced net returns of 11.8% per annum, outperforming the MSCI World Net Total Return Index by 1.7% per annum.

I like the global diversification offered by this ASX share and it generally performs better than the index.

As a bonus, the LIT targets a 4% distribution yield which is decent for income investors.

The Magellan Global Trust share price is trading at a 3.4% discount to its current indicative net asset value (NAV).

Rural Funds Group (ASX: RFF)

Real estate investment trust (REITs) generate defensive regular rental income from tenants.

However, this COVID-19 period has been difficult for most REIT sectors including shopping centres and office buildings.

But farmland is more defensive, everyone needs to eat food after all. However, as the landlord, Rural Funds doesn’t have the operational risks like the tenant does. Even so, Rural Funds owns sizeable water entitlements which can be used by tenants.

The ASX share generates attractive cash rental profit whilst steadily investing in its farms to improve them to create higher rental earnings. The defensive ASX share also benefits from contracted rental increases which are either a fixed 2.5% per annum, or it’s linked to CPI inflation, plus market reviews.

Rural Funds aims to increase its distribution by 4% per annum, which is more than inflation.

At the current Rural Funds Group share price it offers a distribution yield of 5.1%.

Foolish takeaway

Each of these defensive ASX shares have attractive defensive attributes. I think Rural Funds is the most defensive, but it’s trading at a decent premium to its NAV whereas Magellan Global Trust is trading at a discount, so it would be the one I’d go for first.

More reading

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Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Damstra Holdings Ltd (ASX: DTC) share price is today falling as the company released its results for the financial year ended 30 June 2020 (FY20). Damstra’s share price is currently trading 5.64% lower at $1.84 per share.

Damstra is an Australian-based provider of integrated workplace management solutions to multiple industry segments across the globe. The company develops, sells and implements integrated hardware and software-as-a-service (SaaS) solutions in industries where compliance and safety are important.

How did Damstra perform in FY20

In Damstra’s FY20 results, the workplace management provider delivered a record full-year performance with revenue and other income of $23.5 million – a 47% increase on FY19.

The company also announced pro forma earnings before interest, taxes, depreciation and amortisation (EBITDA) of $6.8 million, significantly higher than the prior corresponding period’s $1.8 million.

Damstra points to existing client project rollout, multiple new clients, new product sales and international revenue growth as drivers for the strong numbers. This has seen the company’s revenues grow 42% per year over the last 3 years.

The number of clients the company services increased to 279, representing a 116% increase. This increase was likely in part due to Damstra’s acquisition of Vault.

Damstra reported there was no reduction in demand for its services even during the height of the pandemic. 

Also of note was Damstra’s continued strong spending on research and development (R&D). The company spent $2.2 million on research to position itself well for future growth. Using R&D and acquisitions, Damstra has already increased its number of products from 14 (2018) to 28 this year. Some of the products developed include topical temperature detection software and fever detection integrated with facial recognition.

However, despite impressive reporting growth, investors were clearly expecting more as the Damstra share price is currently trading 5.64% lower.

Balance sheet strength

Damstra’s balance sheet increased to $9.4 million, following its capital raise and strong underlying operating cash flow in FY20. The increase in receivables and income received in advance reflected the revenue growth generated in the period. Damstra continues to operate on a long-term, debt-free basis, as its strong availability of cash underpins its ongoing growth.

On that note, the company announced there would be no dividend, with cash to be reinvested in growth.

Outlook

Looking forward, the company anticipates an increase in demand for its services and an expanded product offering. In FY21, this is expected to be underpinned in Australia by federal and state funding for major infrastructure projects, whilst increased pressures to manage COVID-19 will support a North American expansion.

The company has provided guidance of $33 million–$35 million for FY21 revenue.

At the time of writing, the Damstra share price is almost 6% lower for the day, although it is up 49% on this time last year. 

More reading

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Daniel Ewing owns shares of Damstra Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Damstra Holdings Ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price has come under pressure following the release of an underwhelming full year result.

At the time of writing the biopharmaceutical company’s shares are down 4% to $22.30.

What happened in FY 2020?

Clinuvel’s strong growth came to a halt in FY 2020 after the coronavirus pandemic led to a slowdown in sales of its novel drug Scenesse.

Scenesse is used to increase pain-free light exposure in adult erythropoietic protoporphyria (EPP) patients with a history of phototoxicity. The company appears to believe that demand remained strong in FY 2020 despite lockdowns keeping people inside. Instead, it has blamed the softer sales on EPP sufferers being turned away from hospitals while they focused on COVID-19 sufferers.

Whatever the reason, after delivering an 11% increase in sales in the first half, its sales growth slowed markedly in the second. This led to Clinuvel reporting total revenue of $32.565 million, an increase of 4.8% or $1.5 million year on year. This is particularly disappointing given its launch in the massive United States market during the financial year.

Growing at a much quicker rate was Clinuvel’s expenses. They increased by $6.4 million or ~44% to $20.8 million in FY 2020. Management explained that this was a deliberate and controlled increase. These costs relate to research and development, commercialisation, clinical studies, regulatory fees, and personnel.

Management commented: “The increase in overall expenditures reflects the Group’s focus to further invest in its commercial rollout to treat patients in the EU and, for the first-time, the USA.”

This ultimately led to Clinuvel reporting a net profit after tax of $16.65 million, down over 8% from FY 2019.

Management commentary.

Clinuvel’s CFO, Darren Keamy, commented: “The Company has continued to meet its objectives to provide treatment despite the monumental societal changes which occurred in early 2020. While many healthcare facilities came to a standstill and focussed on critically ill COVID-19 patients, we managed to continue the supply of SCENESSE to EPP centres both in Europe and the USA.”

“Today’s results demonstrate not only an ability to maintain discipline in expenditure and cash management, but also a strength in managing our expenditure levels as a means to invest in future growth. In maintaining sufficient working capital to withstand adverse market conditions, and without further diluting shareholders or assuming debt, we have delivered a return on equity of 23 percent,” he added.

No guidance has been given for the year ahead.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Life360 Inc (ASX: 360) share price has surged almost 9% higher today following the release of its half year financial results.

Based in San Francisco, Life360 operates a market-leading mobile app that connects families by helping them stay safe, keep in touch and protect each other. 

What were the half year results?

Life360 delivered normalised revenue growth of 57% year-on-year (YoY) to US$38.7 million. This included a non-recurring adjustment of US$0.9 million relating to the deferral of subscription revenue.

The statutory earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped US$7.1 million, a 57% YoY improvement.

The company increased its global monthly user-base (MAU) by 25.2 million, up 9% YoY. 

Furthermore, cash from operating activities improved -US$5.5 million from -US$16.7 million in the prior corresponding period. This was due to strong growth in customer receipts and reduced investment in user acquisition. However, it was somewhat offset by higher research and development expenses. Life360 finished the half year with net cash of US$58.4 million and no debt.

Outlook for the Life360 share price

Life360 expects a revenue of US$79–US$82 million in calendar year 2020 and an underlying EBITDA loss of US$10 million–US$14 million, excluding share-based compensation. Operating cash flow is expected to range from US$10 million to US$14 million. 

Looking forward, the company is cautious. The coronavirus pandemic has created significant uncertainty in the US and globally. However, its business model has been resilient despite an initial decline in maonthly active users in April. 

A new membership offering is delivering strong new subscriber growth. Furthermore, Life360 has resumed new marketing activities that will accelerate as conditions return to normal. 

Life360 CEO Chris Hulls said the average revenue per paying circle (ARPPC) for the company’s new cohort of membership subscribers had lifted 33% in the first month since full launch in mid-July. Legacy subscribers were grandfathered on their previous plans, so it will take some time for this increase to be reflected in overall ARPPC.

At time of writing, Life360 share price is trading at $4.03 per share, a jump of 8.92% today. 

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Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Prospa Group Ltd (ASX: PGL) share price and profit results show that the battle between fintech and ASX banks isn’t one sided.

Lots have been written about how new nimble technology players will eat the lunch of traditional banks like Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB).

But the small cap business lender’s results showed it is on the wrong side of the technology divide. While several tech stocks like the Afterpay Ltd (ASX: APT) share price have surged in this COVID-19 socially distanced world, Prospa is feeling the heat.

COVID-19 dents demand for credit

Loan originations in FY20 have fallen by around $50 million to $450.9 million compared to last year while earnings before interest, tax, depreciation and amortisation (EBITDA) crashed to a loss of $19.5 million. This compares to an EBITDA loss of $800,000 in FY19.

It’s a tough time for any company that depends on small and medium companies. The sharp and sudden recession has hit SMBs hardest.

What’s more, this sector is unlikely to bounce back anytime soon, in my view. That means weak demand for business credit from the smaller end of town.

Silver lining to Prospa’s profit results

There are a few bright spots for Prospa though. If you excluded the financial impact from the coronavirus outbreak and other one-off items, underlying EBITDA would have been a positive $4 million.

Further, total revenue jumped 4.2% to $142.1 million. Just don’t count on more growth in FY21 as the gains all came before COVID-19 struck.

On the other hand, the group is only setting aside $18 million in additional provisioning for potential bad debts. The economic impact from the pandemic on its customers isn’t as bad as management initially expected and customer repayments are holding up relatively well.

Growing debt pile

Management also pointed out that total unique customers in Australia and New Zealand continue to increase and is up 43.5% compared to FY19. Prospa claims to have lend more than $1.6 billion to over 28,750 customers since it started.

Not only has the total number of customers gone up, but average gross loans have jumped 35.7% over the previous year to $433.3 million. Let’s just hope its borrowers can continue to service their obligations, especially after COVID support expires.

How Prospa’s balance sheet is holding up

Management also believes it holds a strong balance sheet with $55.3 million in unrestricted cash versus $29 million in FY19.

Its funding partners are still backing the group and Prospa claimed it held $114.1 million of available facilities with total third-party facilities amounting to $442.9million.

More uncertainty on the horizon

“Management have taken steps to ensure Prospa has the right foundations to manage the impact of COVID-19,” said Prospa’s chair Gail Pemberton.

“While momentum in FY20 slowed due to the impact of COVID-19 in the final quarter, we believe it will be restored as the economy and the small business sector recovers.”

The company declined to provide a guidance due to the volatile conditions but committed to providing quarterly updates through FY21.

The Prospa share price slumped 11.1% to $80 cents in after lunch trade.

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Motley Fool contributor Brendon Lau owns shares of Commonwealth Bank of Australia and National Australia Bank Limited. Connect with me on Twitter @brenlau.

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is out of form on Thursday and acting as a drag on the S&P/ASX 200 Index (ASX: XJO).

At the time of writing the banking giant’s shares are down 1% to $18.38.

Why is the ANZ share price dropping lower?

As well as general weakness in the banking sector today, this morning ANZ announced the impending retirement of its chairman.

According to the release, David Gonski has decided to retire as ANZ’s chairman after being in the role for the last six and half years.

The bank has acted swiftly and has already found a successor. It revealed that Paul O’Sullivan will succeed David Gonski as its chairman following the finalisation of its full year results on 28 October 2020.

Who is ANZ’s new chairman?

Mr O’Sullivan is a very experienced executive. He is currently the chairman of Western Sydney Airport Corporation, Chairman of Optus, and a director of Coca-Cola Amatil Ltd (ASX: CCL).

In addition to this, he has previously held senior executive roles with Singapore Telecommunications (Singtel) and was the CEO of Optus between 2004 and 2012. He is also a director of the St George & Sutherland Medical Research Foundation, the National Disability Insurance Agency, and St Vincent’s Health Australia.

Mr O’Sullivan appears up for the challenge of improving ANZ’s operations and simplifying the business.

He commented: “My focus as Chairman will be to continue the work we have been doing over many years to improve our operations and simplify the bank to benefit not only the owners of our company but also our customers and our staff.”

“The banking industry is at an important inflection point as we do all we can to help the economy recover from the impacts of COVID-19 and ANZ will remain committed to that cause,” Mr O’Sullivan added.

“The right time to hand over the reins”.

Outgoing chairman, David Gonksi, explained the reasoning behind his exit.

Mr Gonski said: “I feel it’s the right time to hand over the reins. We have in place an experienced, diverse and talented management team as well as having made significant progress on our ambitions to simplify and improve our operations. Importantly, we have also taken steps to improve the governance around matters impacting our reputation, including the now well established EESG1 Board committee.”

“I’m delighted Paul has agreed to succeed me as Chairman. Paul is an outstanding director who has already made a strong contribution to ANZ and I’m confident he will do an excellent job leading the Board as we continue to work for the benefit of our shareholders,” Mr Gonski concluded.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Over the coming 12 months, the stock of Apple (NASDAQ: AAPL) is headed more than 20% higher from Tuesday’s closing price. So says Wedbush Securities analyst Dan Ives, who raised the stock’s price target to a street-high $600 on Wednesday, and that could be just the beginning. Ives’ bull case has Apple stock climbing more than 40% to $700, pushing its market cap to nearly $3 trillion. 

He cited Apple’s “once in a decade” opportunity in the coming 12 to 18 months, saying that more than one-third of iPhone users could upgrade. The ongoing rollout of 5G, the next generation of cellular technology, will be the catalyst for this upgrade cycle. This would amount to as many as 350 million users of an estimated 950 million buying the upcoming iPhone, in what many analysts have dubbed the “super cycle.”

Apple’s services business will also be a key driver over the next couple of years, the analyst said, generating more than $60 billion in revenue in 2021. This is a testament to the company’s ongoing ability to monetize its existing customer base, and it remains a linchpin of the company’s future growth. 

Ives also cites the impressive contributions from the wearables segment, which he calls “eye popping.” After selling 65 million AirPods in 2019, that number could soar to 90 million this year, an increase of 38%.

Apple’s $2 trillion market cap and its pending stock split have driven increased interest from investors, pushing the stock price to $500, topping Ives’ previous target.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Danny Vena owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple. The Motley Fool Australia has recommended Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is Apple’s market cap headed to $3 trillion? One analyst thinks so appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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