There Seems To Be No Stopping The AAPL Shares
AAPL shares continued to rise on speculation that the company is having a difficult time keeping up with iPad demand. The stock hit another all-time high Monday, closing the session at $232.39 (19.9x estimated fiscal-year 2010 EPS and 18.3x Enterprise Value / Trailing Twelve Months Free Cash Flow). Upcoming catalysts include the launch of the iPad on Saturday; analyst previews of the March quarter (likely raising earnings estimates); March NPD data on Mac unit sales; and the launch of the next generation iPhone this summer as well as the Verizon launch anticipated later this year.
Analysts Busy Releasing Notes On Apple; Gauging iPad Business (Business Week)
Wall Street analysts were out in full force on Apple this morning:
- Ben Reitzes at Barclays Capital believes initial iPad pre-order demand has been solid enough to delay the shipment of new orders. He believes AAPL shares are inexpensive and can benefit from an iPhone upgrade cycle expected later this year.
- Toni Sacconaghi at Bernstein Research believes the iPad launch will have minimal near-term impact on earnings ($0.17 EPS in fiscal 2010), but long-term could contribute more meaningfully.
- Gene Munster at Piper Jaffray believes Apple should protect data generated on its mobile devices and develop a proprietary long-term search strategy as its competition with Google for mobile intensifies.
iPad Won’t Live Up To The Hype Says Analyst (Business Insider)
Forrester Research alumni, Rob Enderle told Bloomberg TV yesterday that “Nothing can live up to this hype. Even if it was made out of fairy wings and ran on pixie dust it wouldn’t make it” when asked about the iPad He also predicts that Apple will have to slash prices in order to meet their own sales expectations, despite the seemingly high demand that has caused a shortage in iPads. Of course, prices of most new devices decrease over time.
Apple’s AT&T Exclusive Ending, Verizon Gets The iPhone (The Wall Street Journal)
AT&T won’t be the exclusive provider of the iPhone for long. The Wall Street Journal reports the code division multiple access (CDMA) version of the iPhone operating on Verizon’s network will be built by Pegatron Technology. Manufacturing starts in September. Offering smartphone users more than one carrier will likely boost iPhone sales (see quarterly iPod and iPhone unit sales)
iPod Creator Powers Off; Exits Apple (The New York Times)
The man once thought to be the number three at Apple behind CEO steve Jobs and COO Tim Cook has left the company. Tony Fadell leaves Apple nearly a year and a half after relinquishing control of the iPod / iPhone division to focus more time on his family. While the exit has been gradual, Fadell severs all ties and will advise companies and pursue private green technology investments.
Just Do It Already, Buy AAPL; You Know You Want To (The Street)
Jake Lynch at The Street outlines five inhibitors that are keeping investors from Apple when in fact they should put ego aside, stop diminishing their returns and just hop on the Apple bandwagon:
- Aversion to “groupthink”
- Newton’s Third Law
- The Value Proposition
- Contrarian myopia
- Premature cognitive closure
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