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It's a Merry Christmas for AAPL shareholders, stock at all-time high

by Michael Grothaus Dec 25th 2009 at 3:00PM

On December 14th, I posted an opinion piece sharing my thoughts that AAPL stock would hit $300 a share in a year (for which I received quite a lot of critical feedback). Two days later, on December 16th, Morgan Stanley's Katy Huberty issued a report stating she believes there is a 25% chance that AAPL will be between $325 and $435 in the next twelve months (she also believes it could fall to $150 if Google's Android takes off and Apple drops the ball).

Huberty based her bullish outlook on the scenario that iPhone sales are on pace to capture 10-15% of the handset market by 2012 – and this doesn't even include soaring Mac sales or the impending iSlate.

Well, the stock isn't at $325 yet, but on December 24th, AAPL did close at an all-time high of $209.04. Not bad considering on December 8th, the stock was down almost 8% on its previous high of $208 on November 16th. Christmas Eve's 3.4% one-day gain was driven primarily by the news that Apple has booked the Yerba Buena Center for the Arts for an event on January 26th.

So, where does the stock go from here? Traditionally, there is an early-January slide for AAPL that coincides with the "buy on rumor, sell on news" MacWorld Expo event, but since MacWorld is going to be Apple-free from now on, who knows if that will happen this year. And even if the early January slide hits AAPL, the company has so much going for it besides the rumored iSlate, I'm beginning to think my $300 target is rather conservative. But that's the future. For now the $209 share price is a nice Christmas gift.

Disclaimer: This author owns shares in AAPL. Opinions in this post are those of the author only and should not be considered as investment advice.

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On December 14th, I posted an opinion piece sharing my thoughts that AAPL stock would hit $300 a share in a year (for which I received...
 

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Jason

When the stock was back down to under $100, I predicted $225. Almost there! Though sadly I had no money to invest, so it's all academic to me.

December 27 2009 at 1:15 PM Report abuse rate up rate down Reply
drandall

i bought apple at $22 just after steve's return. needless to say, i'm pretty happy about how things turned out.

the one thing i do wonder about is why AAPL doesn't split the stock. it has done so once before years ago and now with the share price headed for the stratosphere, i think it would be a great gift to shareholders and new investors too.

a 3-1 split would bring the stock down to around $70 per share and would set off another wave of investment that would quickly carry the stock price up again.

December 27 2009 at 10:02 AM Report abuse rate up rate down Reply
Eideard

I see we have commenters with as much foresight as the average incompetent investor/analyst. Wishful thinking supersedes knowledge.

Only the average analyst probably isn't aware of the changes in MacWorld. Commenters are. Which means even more wishful thinking/conspiracy theorizing/foolishness.

Didn't you ever hear of a stop-loss?

December 26 2009 at 10:03 AM Report abuse rate up rate down Reply
Anthony .V

AAPL is toast, everyone is short this getting short this baby. Watch he Monthly chart on candle sticks and you will see what i mean.

December 26 2009 at 2:58 AM Report abuse rate up rate down Reply
Average White Boy

$300 a share is conservative? The way the hedge funds are manipulating this stock, it'll be hard pressed to stay above $200. Any company that moves like Apple does on unfounded rumors is hedge fund fodder. The next day the market is open, another tablet disclaiming rumor is likely to send Apple back to where it was. At least now I'll have better chance of seeing Apple over $200 before 2009 comes to a close and I'll consider that a victory.

December 25 2009 at 11:19 PM Report abuse rate up rate down Reply
Scott Rose

Right, but most of the oscillations in the stock market are masterful manipulations by fund managers and financial industry insiders. (Remember that the stock market is nothing more than a legal ponzi scheme.) The reason Apple stock jumped so much this week is because fund managers have to produce end-of-the-year holding reports for their investors, and they all want to have Apple on their books at the end of the year to avoid criticism from their investors. Many of them are going to dump Apple after the 1st of the year.

December 25 2009 at 3:40 PM Report abuse rate up rate down Reply
Mike

still kicking my self for not buying stock when it was 77$ a share i was really considering it.

December 25 2009 at 3:37 PM Report abuse rate up rate down Reply
2 replies to Mike's comment
MRCUR

I bought my first bunch of Apple at $72, and then another bunch at $140. Needless to say I'm pretty happy with my investment.

December 25 2009 at 11:43 PM Report abuse rate up rate down Reply
oldskool

Your kicking yourself? I remember when it was below $20 a share!

December 28 2009 at 11:17 AM Report abuse rate up rate down Reply
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