THE APPLE INVESTOR: Wall Street Giddy Over 1 Million iPads Milestone

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Steve Jobs iPad

AAPL Trading Up On iPad News
Apple stock is up nearly $5 today to $266 on favourable iPad unit sales news.  Other upcoming catalysts include monthly NPD data (Mac / iPod business); international release of the iPad (May 10); and the launch of the next generation iPhone (likely June 7) as well as the CDMA / Verizon version later this year.  The stock trades at 22x estimated fiscal-year 2010 EPS and 12x Enterprise Value / Trailing Twelve Months Free Cash Flow.

Apple Has Sold Over 1 Million iPads, Crushing Early iPhone Results (Apple)
Apple has sold over 1 million iPads after just one month on the market.  This period is less than half the time it took to sell 1 million iPhones. iPad users have also downloaded 12 million apps and 1.5 million eBooks. The company is handily beating expectations, as usual, and we could see analyst revisions to iPad estimates should the strength continue. Once again, it is looking like Apple has another hit device on it’s hands.

Gene Munster: iPad Estimates Are Conservative (Forbes, UBS)
Piper Jaffray’s Gene Munster believes that Apple sold 300,000 iPad 3Gs over the weekend, bringing total iPads sold to 1.3 million. 49 of 50 Apple stores Munster talked with are apparently sold out. His current estimates calls for 1.3 million iPads sold by the end of June. That is now “conservative” as the company possibly already hit that number even without the international launch next Monday.  Meanwhile, UBS analyst Maynard Um surveyed consumers outside of Apple stores in NYC and found demand to be solid as well. His findings also support his thesis that the iPad will not cannibalise PC/Mac sales with the majority indicating primary use of the device would be web browsing, media content viewing and personal entertainment (gaming, etc.) – not too surprising.  Of course, this could be a kind of “Catch-22” for Apple since the iPad may have to evolve beyond a pure consumption device if it is going to reach mass-market status.

Moving Music To A Web-Based iTunes Not On Apple’s Immediate Agenda (All Things D)
Sorry music lovers and Lala fans. Any hope that Apple would launch a comparable service at the same time Apple announces its new iPhone has been dashed says Peter Kafka at All Things D. According to record label executives, Apple is not ready to launch a web-based version of iTunes to replace the shuttered Lala. At least not by June, when Apple holds its big Worldwide Developers Conference. Another potential launch date might be in early- to mid-September, when Apple typically updates its iTunes software and iPod lineup.

Apple’s iAd Costs $1 Million Or 10 Times The Similar Mobile Deal (The Wall Street Journal)
According to advertising executives, Apple will charge close to $1 million take part in its iAd platform. That’s as much as 10x what marketers currently pay. If Apple gets its way, “iAd could be a financial landslide for the mobile advertising industry, which was been bouncing along the bottom for years, totaling only $416 million in 2009, according to eMarketer.” Michael Learmoth at AdAge agrees that Apple’s premium pricing could drive up mobile pricing in general.

Apple Stock Is On The Move Today; Technical Indicators Are Bullish (Market Intelligence centre)
Apple stock is on the move again. The last 52-weeks the stock has ranged from a high of $272 to a low of $119 with support around the $255 and $274 ranges. AAPL technical indicators are bullish. Investors looking to hedge could buy the bull-put credit spread (purchasing one put option while simultaneously selling another put option with a higher strike price) below the 230 range.

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