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AAPL Off As Market Dives
Stocks are sharply lower in early trading following the previous session’s rally as investors remain cautious over the future of the U.S. economy and the ongoing euro zone crisis. Shares of AAPL are off as well, down about 1.5%. Catalysts include the next iPhone launch this fall as well as a possible iPad 3 ahead of the holidays; continued adoption in China and other emerging markets; iCloud rollout and adoption; the continued evolution and next generation of Apple TV; and new platforms such as books / publishing and social (Ping). Shares of Apple trade at 9.4x Enterprise Value / Trailing Twelve Months Free Cash Flow (including long-term marketable securities).
Apple Pushed Exxon Aside For A Second As The Most Valuable Company (Various via iDygest)
Apple surpassed Exxon Mobil as the most valuable company in the U.S. yesterday for some of the trading period. Shortly before 2pm, Apple’s stock gained 3.4% to $365.10 bringing market capitalisation to about $338 billion. Exxon Mobil shares, given global oil pressures on macro-economic fears, were trading at $69.23, down 1.4%, giving the oil company a market cap of $337 billion. That’s a long way to come from struggling to stay afloat in 1996, to one of the most valuable companies in the world.
Apple Devices Set To Dominate Through 2011 (Fortune)
Both Apple’s Mac and iPad lineup are poised to make significant gains in the second half of 2011, as the Windows-based PC market flatlines. Deutsche Bank analyst Chris Whitmore believes the traditional PC market does not have “meaningful new offerings” coming this year, while Apple is aggressive with both new hardware and software. Whitmore also maintains that the recent launch of Mac OS X 10.7 Lion and Thunderbolt-equipped MacBook Airs may ultimately do more to shift Apple into control of the global market for portable computers than even the iPad alone.
iPad Competitors Might Have A Better Chance In Europe… (Reuters)
A new analysis claims tablet makers looking to compete with the iPad may stand a better chance in Europe, though pricing could be an issue for Apple’s rivals. Forrester believes that Apple’s smaller retail presence in Europe poses an opportunity to competing companies including Samsung, Acer and Research In Motion. That said, Huawei or ZTE have no content or retail channel strategy to support a lower-priced tablet.
…Except Samsung Who Was Just Barred From Selling The Galaxy In The EU (FOSS Patents)
Apple has been granted a preliminary injunction barring Samsung from selling its Galaxy Tab 10.1 anywhere in the European Union with the exception of the Netherlands. This comes a week after Samsung agreed to postpone the launch of its Galaxy Tab 10.1 in Australia, the leading manufacturer of tablets running Android OS has suffered a second major setback. Apple claims that the Galaxy imitates the iPad and infringes on various IP rights owned by Apple.
Facebook Launches Messenger To Take On iMessage (Various via iDygest)
Facebook released a new app for iOS and Android, which mixes SMS messages and Facebook messaging into a group messaging solution for your smartphone. Similar to Google’s Huddle, Apple’s iMessage or Blackberry messenger, Facebook Messenger aims to be a cross-platform messaging solution as the social networking giant delves even deeper into user activity. The service will also provide several more advanced features such as group conversations and location support.
iTunes Not Close To Streaming Service According To Film Industry (CNet)
The rumours from last week about Apple being on the verge of launching a cloud movie service, which would enable iTunes users to stream movies from Apple’s servers and then re-download them to other devices, are at best premature. Apple has yet to sign cloud agreements for feature films with at least four of the top six film studios, according to multiple film industry sources.
In Another Horrible Decision, Tribune Company Making Its Own Tablet (CNN)
Need another reason why newspapers are going down the toilet? The Tribune Company, one of the largest newspaper companies in the country including the Chicago Tribune, Los Angeles Times and The Baltimore Sun, wants to create an Android-powered tablet for subscribers. This makes little to no sense for a company that has been staving off bankruptcy for the last half a decade and might actually take the cake for most horrible Hail Mary to save a dying industry. Heard of the App Store?
Apple Snatches Up Cisco Engineers (AppleInsider)
Despite the overall dismal employment situation in the U.S., highly-qualified engineers are finding no shortage of job opportunities as high-tech companies expand and increase demand for top-flight workers. Global Equities Research analyst Trip Chowdhry notes that Apple has already snatched up 20 to 25 of the engineers Cisco recently laid off.
Daily Trader: Why You’d Buy Apple On The 6th Worst Trading Day Ever (Seeking Alpha)
Put simply, the market had fallen far enough that it didn’t matter if Apple fell further. Buy 20% of how many shares you’d like to buy and then sleep soundly knowing that if you wake up and the market continues to drain, you could always pick up another 20%. Repeat. It is very rare to find an investment that is simultaneously a growth investment and a value investment.