The Apple Investor is a daily report from SAI. Sign up here to receive it by email.
Shares of AAPL are up marginally as the market wobbles on slowing job growth. The next big catalyst for the stock will be June quarter earnings likely the third week in July. Other future catalysts include monthly NPD data (Mac / iPod business); iPad and iPhone 4 sales updates; and quite possibly the entrance into the TV market. AAPL trades at 21x estimated fiscal-year 2010 EPS and 11x Enterprise Value / Trailing Twelve Months Free Cash Flow.
Gene Munster Believes Apple Is Well Positioned For TV Market (Fortune)
Piper Jaffray analyst Gene Munster believes that Apple is well positioned to revolutionise television, similar to what the iPhone did for cellular telephony. This could be the sixth hit of Steve Jobs’ career. Reasons behind his thesis: 1) Apple TV hasn’t had an update in 3 years, an eternity for Apple; 2) the Mac mini with a built-in HDMI output could make the Mac the centre of a home theatre; and 3) Jobs has identified all the pain-points in the industry (meaning he’s been thinking about it, a lot).
Credible Sources Say Apple TV Will Be A Reality (The New York Times)
Apple could create an entirely new product or base a new television design on the iOS operating system and enter the TV market (successfully). The company is already on course to become the second-largest provider of paid on-demand movies in the US by the end of 2010 through iTunes. Dan Frommer at Business Insider is wondering now that Hulu’s subscription service is finally here, where is Apple’s iTunes TV pitch? We’re all waiting.
Apple Allowing Google To Sell Targeted Ads On iPhone And iPad, For Now (The Wall Street Journal)
After changing his tune, Steve Jobs said it’s OK to collect user data to help sell ads. However, you will need to get Apple’s permission to do so. As of now, it doesn’t appear that Apple has barred Google from selling targeted ads on the iPhone and iPad. Revenue from ads sold on smartphones in the U.S. is expected to increase by 43% to nearly $600 million this year. Apple already has $60 million in commitments for its iAd platform which rolled out yesterday.
Daily Trader: Apple Up 17% YTD But Resistance In Stock (The Motley Fool, TradersHuddle)
With the success of the iPhone 4 and iPad, Apple’s shares have appreciated more than 17% halfway through 2010 versus down 7% for the S&P 500 and the NASDAQ. That said, the stock price is below its 50-day moving average creating resistance around the $250 level. It’s a difficult buy here. Perhaps take a look at a few tangential iPhone 4 trades.
Business Insider Emails & Alerts
Site highlights each day to your inbox.