Universal Display Corporation (NASDAQ: OLED) is having an incredible start to the trading session in the pre-market hours this morning. However, the company itself has not released any news. In fact, the gains seem to be the result of reports surrounding Apple Inc. (NASDAQ: AAPL) suggesting that revenue is likely to soar ahead as one of the world’s largest companies opens the door to opportunity. Today, we’ll talk about:
- The news that is sending OLED toward the top;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
OLED Heads For The Top On AAPL News
As mentioned above, Universal Display Corporation is having an incredibly strong start to the trading session this morning. While the company hasn’t released any news this morning, the gains seem to be the result of reports surrounding Apple. Ultimately, news is breaking that Apple will be shifting focus with regard to its screens for its next generation of iPhones.
It all started after South Korea’s Electronic Times released a report surrounding AAPL. The news outlet said that the company has decided to use next-generation screens for its next lineup of iPhones. These screens are reported to be organic light-emitting diode screens – just the type of display that OLED is focused on. Nonetheless, there are some concerns with regard to the company’s ability to do so due to pricing pressures and the sheer number of iPhones that are sold each year. in fact, Jerry Kang, Principal Analyst at IHS Markit, had the following to offer:
Ultimately, the plan is for Apple to go full OLED on its iPhones as far as I know but whether that’s going to happen at this point is a question mark… Apple hasn’t been able to expand on its iPhone X production because of market demand and price issues.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Universal Display Corporation, while the company hasn’t released any news of their own, the news surrounding Apple represents an incredible opportunity. So, it’s no surprise to see that excited investors are pushing the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:26), OLED is trading at $114.00 per share after a gain of $14.35 per share (14.40%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on OLED. In particular, we’re interested in following the story surrounding the company’s potential opportunity with Apple and how they intend to take advantage of this opportunity. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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