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AAPL Rises With Market
Stocks are rising after world finance leaders pledged to better balance global trade. Shares of AAPL are up about 1% in early trading. Upcoming catalysts include monthly NPD data (Mac / iPod business); holiday iPhone and iPad sales updates and carrier expansion; new content revenue streams such as video, books and social (Ping); and the uptake of refreshed Apple TV. AAPL trades at 14x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
Five Catalysts To Drive The Stock In This Next Leg Of Growth (Seeking Alpha)
As Apple’s stock price hovers above 300, what products and trends will drive the next leg of company and share price growth? Let’s peer into Apple’s future to find future catalysts for stock price appreciation: 1) iPad sales; 2) The white iPhone; 3) An Apple Branded TV (not Apple TV); 4) The Verizon iPhone; and 5) The halo effect.
Apple’s Not About To Buy A Social Network Still Figuring Out Monetization (Fortune)
Speculation last week swirled as Steve Jobs told investors he was keeping his $51 billion in cash for “strategic opportunities.” Firstly, Jobs does not necessarily mean mergers and acquisitions. He might be talking about building something, like expansion of the North Carolina data centre. Second, if he were to buy a company, it would not be Facebook (a name that came up again over the weekend). Social network companies that know nothing about building products and are figuring out how to monetise what they do have are not the kind of enterprise that Apple buys.
Apple Data centre Nearly Operational And Looking To Double (GigaOM)
Apple’s mysterious North Carolina data centre facility is ready to go online potentially within days, and the company is apparently already considering doubling the facility’s size. The current building covers some 500,000 square feet, as will the reported second building. Most obviously, Apple just announced that it sold 250,000 Apple TVs in that device’s first three months on market. Since the new Apple TV is a streaming only product, that should translate into a much greater strain on Apple’s servers.
Apple Gearing For The Cloud With Data centre And MacBook Air (All Things Digital)
Steve Jobs says the MacBook Air is the future. If that’s to be the case, the machine and ecosystem needs to evolve a bit more. That evolution is likely already well under way and perhaps being engineered at the company’s massive North Carolina data centre. And what better use to put it to than the cloud services that might completely eliminate the need for high-capacity hard drives and give the Air storage to match its performance characteristics. Were Apple to create the cloud-based version of iTunes and were it to bolster MobileMe’s iDisk and Gallery services with more-robust storage, even the 64GB Air might seem an attractive option. The data centre may well make both those things possible.
Daily Trader: Implied Volatility For AAPL Options Got Wind Sucked Out Of Them (Seeking Alpha)
A look at the prices as of the October 19 close shows how the weekly options (that expire October 22) behaved compared to some of the longer term expirations. The stock was down $8.51 to 309.49, yet the October 310 puts lost a lot of value anyway. The November 310 puts were down slightly and the January 310 puts were up slightly. That’s not unusual. It’s often what happens when unknowns (how traders will react to news) become known. Apple’s overall implied volatility across most strikes and expirations soared as the earnings date loomed, then fell significantly on Tuesday, but the near term options had more volatility baked into them.
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