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AAPL Up With Strong Market
Stocks are finally higher today as upbeat U.S. and Chinese data lifted investor confidence about global economic recover. Shares of AAPL are up a strong $5. Upcoming catalysts for Apple include monthly NPD data (Mac / iPod business); holiday iPhone and iPad sales updates and carrier expansion (Verizon); new content revenue streams such as video, books, newspapers and social (Ping); moving iTunes into the cloud; and the uptake of refreshed Apple TV. AAPL trades at 14x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
Analyst Ups His iPhone Forecast Based On Sales In Asia (Barron’s)
ThinkEquity analyst Rajesh Ghai raised his forecast for iPhone sales this holiday quarter. He now sees 17 million iPhones being sold, up from 16 million previously. The increase is based on what sources tell him is increasing demand in China, Taiwan, and South Korea. He’s already quite a bit higher than some Street estimates for Apple to simply match the 14 million iPhones it sold this last quarter. Expectations are rising, and while the stock hasn’t done much the past few weeks, could be a net neutral holiday quarter in terms of perception.
Apple Will Get To $1,000 Based On The Smartphone And App Store (MarketWatch)
Cody Willard at MarketWatch claims to be telling people in 2005 that Apple would have a larger market-cap than Microsoft. Today he is telling people that Apple will be a $1,000 stock by 2015. How? The burgeoning app market:
- 100 million smartphones sold last year
- More than 250 million smartphones will be sold next year
- More than a billion smartphones will be sold annually within 10 years
- An installed customer base of 2 billion people using smartphones by 2020
- Those 2 billion customers will be using dozens if not hundreds of apps each every year
- That means several 100 billion different apps being consumed every year within a decade
Cody is all about the apps.
The Race Is On Between Microsoft And Apple To Hit 5 Million Units (Seeking Alpha)
There’s a good old-fashioned battle brewing between Apple and Microsoft. Which new gadget can get to 5 million units faster: Kinect or the iPad? The goal for both is sales of 5 million units by the end of the current quarter. Microsoft is well on it’s way with 2.5 million units already sold. Apple’s goal isn’t necessarily Apple’s goal, as much as it is Wall Street’s. Piper Jaffray analyst Gene Munster believes each Apple Store was selling 8.8 iPads per hour over the holiday weekend. If anything, it does say something about the state of the consumer economics and holiday spending. Something positive.
Shares Of AAPL Stagnant As Investors Close The Books And People Wait For The Blowout Quarter
Shares of Apple have done relatively nothing lately. Despite being one of the big winners of the Black Friday weekend sales reports. What gives? It may be no more than profit taking and risk flight, or closing the books for the year. One analyst believes any dip in Apple will be short lived, with the shares probably marching upward again sometime around mid-December, as it dawns on the Street that the holiday quarter will be stronger than forecast (yet again).
Insider Selling Indicates A Bearish View On AAPL (The Motley Fool)
If you concentrate on buying and selling shares of AAPL conducted in the open market by Apple employees, $48 million worth of shares have been sold the past year with no shares purchased. According to Dr. H. Nejat Seyhun’s book Investment Intelligence from Insider Trading, insiders therefore are bearish on AAPL and the stock should be avoided. Ridiculous. Stock is part of compensation. You have to sell it to get paid. It doesn’t mean Apple as a company isn’t crushing the consumer electronics market.
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