AAPL Ends The Day Strong On iPad Sales News
AAPL shares closed up Monday despite opening weekend iPad sales falling short of most analysts’ expectations. The stock ended the trading session at $238.49 (20x estimated fiscal-year 2010 EPS and 19x Enterprise Value / Trailing Twelve Months Free Cash Flow). Upcoming catalysts include details regarding the iPhone OS 4 on Thursday; March quarter results (likely the third week in April); March NPD data on Mac unit sales; physical launch of the next generation iPhone this summer; and the CDMA (Verizon) iPhone launch anticipated later this year.
Cramer Says Keep Buying Apple (CNBC)
Mad Money’s Jim Cramer is telling investors to “pull the trigger on Apple” because, love it or hate it, the “iPad is addictive as Oxycontin.” That said, he’s dolling out dual advice. “If you’re a trader, take some off the table. If you’re an investor, forget it, the stock is going to $300.” As much as I hate to agree with him, he’s probably right.
iPad’s Uptake Hinges On Technical Performance (Nomura Securities)
After using the iPad, Manabu Akizuki at Nomura Securities expects the “uptake of the iPad to hinge on the effectiveness of Apple’s in-house A4 processor [low power consumption and high performance] and broadening the range of dedicated applications.” He sees rapid growth in content partners as well as “grass-roots applications.”
The iPad Won’t cannibalise Laptop Sales (Seeking Alpha)
There has been much speculation as to where the iPad sits in the computing ecosystem. Does it exist in between the PC / laptop and the mobile phone, or does it cannibalise the former, replacing that “legacy” system all together? Seeking Alpha contributor Mark Riddix believes that the iPad is revolutionary, but we will still use our traditional computer for multi-tasking and content creation. If that assumption is true, it’s good news for Apple, which is rumoured to be refreshing it’s notebook line this month.
Apple To Remain In The Limelight, Announcing iPhone OS 4 Details Thursday (PC World)
Apple continues to capture the media’s attention (and subsequent attention of investors). On Thursday April 8, the company will reveal details about its next-generation iPhone operating system, iPhone OS 4. Some of the top expected features include the support of multi-tasking third-party applications, a unified mailbox, GPS navigation and Apple’s new mobile ad product, iAd.
What’s The Impact Of the iPad and App Pricing On Apple Stock? (Trefis)
According to Trefis, an online financial and analytical tool, the Apps business represents 6% of the company’s $267 Apple stock target price, while the iPad accounts for 4%. By adjusting the top variables for the iPad (pricing, unit sales and gross margin) and the Apps business (song pricing, song unit sales, average pricing, downloads, paid percentage, gross margin) on the interactive model, investors can estimate the impact to the stock price.
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