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AAPL Setting New Highs
Some big upbeat earnings reports from JP Morgan Chase and Intel are lifting the market today. Shares of AAPL are on fire, north of $300. Upcoming catalysts include third quarter earnings announcement on Monday, October 18th at 5:00pm ET; monthly NPD data (Mac / iPod business); iPhone sales updates and carrier diversification; iPad sales updates and expansion; new content revenue streams such as video, books and social (Ping); and the uptake of the newly refreshed Apple TV. AAPL trades at 16x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
Apple Stock Opens at $300 (MacRumors)
Apple’s stock is trading today over $300 per share. The stock is up 25% since late August and 42% year-to-date. Apple has passed several stock-related milestones so far this year, including passing Walmart and Microsoft to become the second-largest U.S. company by market cap, trailing only Exxon. Apple is due to release its earnings report for the calendar third quarter on Monday, with some observers predicting that the company will reach $20 billion in quarterly revenue for the first time in its history and surpass Microsoft in revenue for the first time in 15 years.
Another Analyst Raises Estimates And Price-Target (Barron’s, Barclays Capital)
Ben Reitzes at Barclays Capital reiterated his Overweight rating on Apple but lifted his price-target to $385 (from $340). He also increased his EPS forecast for the September quarter to $4.05 (from $3.91). He believes that Apple is the best growth play in the IT hardware segment with the possibility of significant double digit revenue growth for several more years. Reitzes boosted his forecast for iPad unit sales to 4.8 million (from 4.3 million). He also increased his iPhone estimates to 51.7 million for this fiscal year and 64.3 million for fiscal 2012.
Blodget Sits Down With Apple Ax Gene Munster (Business Insider)
Business Insider’s Henry Blodget sat down with Piper Jaffray analyst Gene Munster to talk Apple. A few highlights: Gene doesn’t think Apple TV will be a hit (well, a hit up to Apple standards) and also contends that Android-based tablets will be more popular than the iPad.
Intel Concedes That The iPad Will Hurt PC Sales (Cult of Mac)
Intel’s helmer, Paul Otellini, knows that the iPad will take it’s toll on PC sales. “Consumers will have a limited amount of discretionary income and some will choose to purchase a tablet instead of upgrading an existing PC or purchasing a netbook,” Otellini said. How the iPad will affect PC sales is “the big question on everyone’s mind.” An even bigger question is will Apple lift all boats, or simply sink competitors.
Interview With Ex-Apple CEO To Dish On Jobs (Cult of Mac)
Cult of Mac will publish an interview with ex-Apple CEO John Sculley tomorrow. This is the the first time Sculley has talked publicly about Steve Jobs since he was forced out of Apple in 1993. Sculley reveals the secrets of Jobs’ methodology, and a few surprises:
- How Jobs modelled Apple on Italian car companies, not other computer makers
- Why Jobs demanded the Mac team have no more than 100 people
- Jobs’ other brilliant invention from the Mac era that no one ever talks about
- The biggest mistake Apple ever made
- How the Newton saved Apple from going bankrupt
- Why it would have been impossible to licence the Mac to other PC manufacturers
Jobs wooed Sculley from Pepsi to run Apple with one of the most famous lines in business: “Do you want to spend the rest of your life selling sugared water or do you want a chance to change the world?”
Glass-Gate: A Storm In A Teacup (9To5Mac)
This morning’s wonderful anti-iPhone info-blip claims that the iPhone 4 breaks 82% more than iPhone 3Gs. That’s a great headline, however these claims are based on data from a firm called SquareTrade and is based on claimed analysis of only 20,000 iPhone warranty customers.
Bloomberg to Air Steve Jobs Bio Pic (CNN Fortune)
For interested investors, Bloomberg TV will air a biopic on Steve Jobs; a look at the legend. The segment will air tomorrow, Thursday, October 14 at 9pm ET. For Bloomberg TV live to your computer, you can click here to watch.