In the middle of a congressional hearing against the FBI, Apple’s stock rose $100 and stayed there after straggling in the double digits for over a month.
The news is exciting for Apple. The company’s value has been dropping since
since the start of 2016 and it’s been one of the biggest mysteries on Wall Street—in part because of its incongruently low P/E ratio of roughly 11. Compared to other tech giants, Apple appears to be undervalued.
The stock closed at $100.53 Tuesday, leading an extended market rally.
Shares climbed back as Apple’s lawyer make the company’s case before a congressional hearing Tuesday. Apple opposed a judge’s order to unlock one of the San Bernardino shooter’s iPhone. In a separate case regarding drug deals Tuesday, a Brooklyn, New York federal judge denied a federal order that would have forced Apple to unlock an iPhone.
Apple’s stock is still down 25% from its all-time high of $134.54 in February.
In January, the company fanned concerns about stagnating growth after posting a disappointing fourth quarter earnings report. Apple missed revenue guidance and posted a first quarter sales forecast between $50 and $53 billion, or a 14% decrease year over year.
Apple bulls however have repeatedly predicted that the tech giant could be the first company to reach $1 trillion valuation by the end of the year—roughly $180 per share.