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AAPL Testing Those Highs!
Despite yesterday’s weak market, shares of AAPL showed no signs of slowing down, even testing all-time intraday highs and currently up 1%. Upcoming catalysts, not that it needs any, include monthly NPD data (Mac / iPod business); iPhone sales 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 16x Enterprise Value / Trailing Twelve Months Free Cash Flow (incl. long-term marketable securities).
- Barron’s headlined with the increased price target. As did Fortune. Gene reiterated his Buy rating and raised his target on the stock to $390 from $371.
- Jay Yarow at Business Insider focused on the Android threat. Munster said that while Apple will sell millions of iPads next year, long term, Android will provide a threat to the iPad’s chance at dominance. Android could surpass the iPad in tablet market share due to devices from numerous manufacturers. Much like what is happening with the iPhone.
- The Street focused on the increase in calendar 2011 iPad estimates going from 14.5 million to 21 million units based on three solid growth drivers: Increased supply and expanded distribution channels: Demand is no longer outstripping supply and Best Buy and Target stories will be carrying the iPad into the holiday season. International rollout and adoption in price sensitive markets: Apple recently launched the iPad in China and 5 Latin American countries (20 countries total). The iPad is now available in markets where it is more likely that the iPad is used as a primary computing device for those who could not previously afford a Mac. Uptake in the enterprise sector: Of any product Apple sells we believe the iPad has the potential to garner the largest percentage of its sales from enterprise customers.
Zuckerberg Places Higher Than Jobs On Forbes Richest People In America (Forbes)
This is not stock impacting. At all. But I couldn’t help myself. Forbes just released its annual list of the richest people in the America and, not surprising, Bill Gates and Warren Buffett snagged the top two spots with obscene amounts of wealth. The biggest surprise on the list, however, is that 26-year-old, Facebook CEO Mark Zuckerberg placed ahead of Apple CEO Steve Jobs. Zuckerberg came in number 35 on Forbes top 400 list with an estimated net worth of $6.9 billion. Jobs and his $6.1 billion came in several spots behind at number 42.
Facebook’s Phone To Debut In Europe First (Bloomberg)
I’ve lost track. Is Facebook making a mobile phone? According to Bloomberg, today the answer is yes. About a fourth of the company’s more than 500 million users log on to Facebook from wireless devices. The company is said to be working with mobile-handset manufacturer INQ Mobile Ltd. on two smartphones that may be carried by AT&T Inc. The devices are due to be introduced in Europe in the first half of next year and the U.S. in the second half. That’s quite specific information and when there’s smoke…
NBC Says Content Too Good For Apple (The Wall Street Journal)
Apple’s TV show rentals from ABC and Fox for 99 cents is splitting the networks. NBC Universal has stated they will not be part of the service. CEO Jeff Zucker, who was just ousted from NBC, is quoted as saying, “We do not think 99 cents is the right price point for our content. We thought it would devalue our content.” Has he seen the reviews of Chase or Undercovers? He’d be lucky to get 99 cents. Lucky.
Verizon CEO Hopes “Apple Will Get With The Program” (The Wall Street Journal)
Despite recent reports that a CDMA-based iPhone is headed to Verizon, CEO Ivan Seidenberg doesn’t sound hopeful. “At some point, Apple will get with the program,” he said with frustration. There have been reports that Apple has been ordering massive amounts of CDMA chips, which has been interpreted as prepping for a CDMA-based phone on Verizon. But Sprint also uses the same technology. Seidenberg didn’t deny that his network would eventually get the iPhone, which means that it’s probably coming soon.
Intern Was An Apple TV Apps Engineer; That’s More Than A Hobby (MacRumors)
Apple hasn’t shied away from saying that it will look into apps for the streaming set-top box. It seems like the company is serious about that. Recently on LinkedIn, an intern described their summer position as an “Apple TV Apps Engineer.” Widgets, an Internet browser, more streaming services for radio and Internet content could be coming to an Apple TV soon! Apple is slated to start shipping the newly revamped Apple TV soon.
Apple Briefly Became The Second Largest Company In The World (Bloomberg)
Apple briefly overtook PetroChina Co. to become the second largest company in the world by market value. The stock Apple climbed as high as $292.76 in intraday trading, giving it a market value of $267.5 billion, just behind Exxon Mobil Corp. Since introducing the iPhone in January of 2007, Apple’s stock has more than tripled. Earlier this year, the company introduced the iPad tablet computer, which is already outselling the nine-year-old iPod. It’s just a matter of time before that higher price sticks and PetroChina is number three for good.
Daily Trader: What’s A Cheaper Stock, Apple Or Google? (eDividendStocks)
Since the media pits Apple and Google against one another, which is completely valid given the fact that they are, which stock is cheaper? In a side-by-side comparison…
- Trailing P/E: Apple
- Future P/E: Apple
- Price / Sales: Apple
- Price / Book Value: Google
- Earnings Growth: Apple
- Short Ratio: Apple
…Apple is the clear winner.