Apple stock price could surge 25% by following Tesla into Bitcoin (BTC) – Analysts

Analysts are still weighing in on what could happen next after Tesla announced a bold move to invest $1.5 billion in BTC and accept crypto payments. 

Fundamental analysis Apple Next?

RBC analyst Mitch Steves believes Apple (NASDAQ: AAPL) may follow suit and invest $1 billion in Bitcoin. Moreover, the tech giant should start developing Apple-branded exchange and wallet to take full advantage of the 1.5 billion installed user base.

“When we think of the Apple Wallet, there is a clear opportunity in our view to create a buying and selling mechanism for crypto currencies (in addition to standard payment processing – although not necessary). To be clear, we do not believe Apple needs to hold bitcoin as a balance sheet asset (although it would likely help), but rather allow users to buy and sell crypto assets,” the analyst said in a research note.

This way, Apple could benefit and potentially add $50 billion to its business. Steves set a Street-high price target of $171.00 per share on the Cupertino-based company’s stock, which represents a premium of about 25% compared to the stock’s closing price yesterday. 

“While the bigger business is likely in the exchange of assets, we think the firm could also fund its own initiative by adding a small amount of Bitcoin (or another crypto asset) to its balance sheet. If we assume that the firm can add $1B to its balance sheet (only ~4-5 days of cash flow) we think the price of the underlying asset would then go up in a substantial manner,” Steves argues. 

Similarly, Galaxy Digital’s Mike Novogratz believes other companies are very likely to follow Tesla into BTC.

“Every company should be looking at how to accept digital currencies, digital payments as part of their business scheme. It’s not that difficult. It’s what customers want, it’s where the world is moving. And so that I think he’s getting ahead of the curve, and I think you’re going to see every company look to figure out how they could, from McDonald’s to Bojangles, you name it,” he told CNBC. 

Technical analysis: Bull-case scenario in play?

Apple stock price is up over 3% in February as buyers work to erase losses recorded two weeks ago. The profit-taking activities facilitated a rotation in Apple stock after buyers forced a new all-time high above the $145.00 mark. 

Apple daily chart (TradingView)

Looking forward, it seems that buyers are still in control of the price action. A correction of about 10% was seen as an opportunity to buy Apple shares, with investors now aiming for $147.50 – 127.2% Fibonacci extension.

Summary

Analysts from investment firm RBC Capital Markets believe Apple could be the next major company to invest in Bitcoin and start offering crypto services.

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