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AAPL Slumps As Market Dips
The weak jobs report indicates economic growth will slow in the coming months. As such, shares of AAPL are off with the broader market. Future catalysts for Apple stock include monthly NPD data (Mac / iPod business); iPhone unit updates and AT&T exclusivity expiration; iPad shipment ramp and international expansion; new content revenue streams such as video and books; and possible entry into the TV market with a refresh of Apple TV. AAPL trades at 14x Enterprise Value / Trailing Twelve Months Free Cash Flow.
Apple Crushing Probability Theory (Eventide)
The law of large numbers dictates that Apple won’t be able to maintain its incredible earnings growth for much longer. Not so, says Robert Leitao, a regular at the MacObserver. In the June quarter, close to 50% of Apple’s revenue was derived from products that did not exist in the market three years ago. Going forward, Apple’s reported revenue will be derived from iPhone and iPad sales. “At the moment there’s no practical limit to the size of the market for these two products.”
Apple’s Future Stock Performance Based On Historical Comparisons Not Good (Barron’s)
A study, based on a list provided by Standard & Poor’s (as of the beginning of each year, starting 1980) showing that stocks that have risen to the top of the market-cap rankings, suggests that the odds are running significantly against Apple’s stock performance going forward. These stocks lagged the S&P 500 index by an average of 5% per year. The party might be over.
Android Will Overtake The iPhone By 2012 Says Research Firm (iSuppli)
According to technology research firm iSuppli, Apple should be prepared to eat Android’s dust. By 2012, the firm said, Android will be used on 75 million smart phones (19% market share), up from 5 million in 2009. The number of Apple iOS phones will grow to 62 million (14% market share) in 2012, up from 25 million in 2009. It makes sense, considering Android is available on four carriers and a boatload of devices.
Apple Bite: Retail Stores Are Cash Cows (All Things Digital)
Apple’s retail store revenue increased 73% year-over-year to $2.6 billion in the June quarter. Taking a closer look at the historical meaning of that number: Apple retail store revenue for that one period was greater than the company’s total quarterly revenue from the second quarter of fiscal 1996 through the fourth quarter of fiscal 2004. The increase was due largely to the release of the iPad.
Go Against The Grain And Buy Apple (The Street)
The latest of the iPhone killers, Research In Motion‘s Torch, had great fanfare but the truth of the matter is the device has a slow processor and a small screen. Not a threat to Apple, says trader Marek Fuchs. He is recommending buying shares of Apple against the market.
Apple Reportedly In Talks To Buy Chinese Software Company (PC World)
Apple is in takeover talks with Chinese gaming software maker Handseeing, according to an executive of the Chinese company (that’s not going to go over well). The deal would be the iPhone maker’s first major acquisition in the China. A formal announcement on the deal is expected within the next two months. Apple has nearly $46 billion in cash (including long-term marketable securities).
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