The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
AAPL Soars With Market
As the market rises ahead of the Fed meeting, shares of AAPL climb to record intra-day highs. Upcoming catalysts for AAPL include monthly NPD data (Mac / iPod business); iPhone unit updates and carrier diversification; iPad sales updates and expansion; new content revenue streams such as video and books; and the uptake of the newly refreshed Apple TV. AAPL trades at 15x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
iPad Is Now Slightly cannibalising Mac Sales, According To Analyst (AppleInsider)
According to Shaw Wu at Kaufman Bros., strong sales of the iPad are expected to have a negative impact on Mac sales. Suppliers in the U.S. as well as those overseas have indicated that the iPad appears to be “slightly cannibalising” low-end MacBook sales. Regardless, he believes Apple is poised for a strong quarter in Mac sales (record 3.8 million) and also increased his price-target on the stock to $374. I didn’t even realise Apple had a low-end notebook. The lowest-end is $999; which isn’t low at all. That’s still a $500 price difference.
Facebook Building An iPhone Killer (TechCrunch)
Facebook is building a mobile phone according to sources. The company is developing the software platform and working with a third-party hardware company for the actual device. Facebook wants to integrate deeply into the user contacts list and other core functions of the phone, which can be done more effectively if it controls the operating system. Dan Frommer at Business Insider does a great job of outlining the top-secret project. Facebook said, while the company was pushing deeper into the mobile phones sector, it denied that it would build its own device.
Apple Buys Face Recognition Technology Company (9To5Mac)
According to Norwegian Mac website, Apple bought all of the shares of Swedish face recognition company Polar Rose. Through sophisticated algorithms, the company has developed technology, which recognises faces and images. In addition to Facetime, the technology can be built into web applications like MobileMe. The company also had an Android product, which will likely get scrapped.
Daily Trader: Positive Money Flow Into AAPL (Learning Markets)
AAPL lost some ground on Friday, but there is some bullish pressure building up in the background. Looking at money flows, $2 million flowed into the stock on uptick trades while only $1.4 million flowed in on downtick trades. That gives AAPL an up / down ratio of 1.48. The stock has gained nearly 9% during the past month and is currently trading above its 20-day, 50-day and 200-day moving averages.