AAPL could hit $410 according to R.W. Baird analyst
If only this blogger had held onto that Apple stock that was bought for about $8 while dabbling in the market in the late-1990s. Instead the profits from selling it at $27 a share were put into such wise investments as Webvan. The only good thing about my dot com bubble investing period is that only a small chunk of money was set aside to play with and no more was added. On the other hand if I had just had more patience and stayed in Apple, I'd have a very nice chunk of change with it now trading at over $317 per share and likely to go much higher.
According to a recent Associated Press article, William V. Power, an analyst with R.W. Baird is projecting that AAPL shares will be trading at as much as $410 before long and he is not alone. Numerous analysts have projected $400+ for Apple and the average of 38 different projections is $370.50. The key to that continued growth according to Power is the iPhone which currently only commands about three percent of global mobile phone sales. As smartphones grab an ever larger stake of the handset market, Apple and its prime competitors, Android and Windows Phone 7 are all likely to see big gains in the next few years and that will certainly help Apple's bottom line and stock price.
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If only this blogger had held onto that Apple stock that was bought for about $8 while dabbling in the market in the late-1990s. Instead...
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I'm really surprised it hasn't split yet. Historically, Apple has split the stock, presumably to try and keep it below the $200 threshold. It split in 2000 and 2005, so i'm guessing they're about due for one.
November 07 2010 at 12:29 AM Report abuse Permalink rate up rate down ReplyI've heard the no-split is a lingering effect of Schmidt's time on the board - he was anti split. I find it far easier to track performance of multiple blocks of shares when I don't have to account for splits.
I'm not sure what the benefit to splitting would be; it's an accounting and legal expenditure with the supposed psychological benefit of a more "attainable" stock price for the smaller investors. With Apple performing like it is, people are getting in regardless and the higher stock price lends an almost "extraordinary" atmosphere to the stock/company.
November 08 2010 at 8:24 AM Report abuse Permalink rate up rate down ReplyConsidering I own Apple stock, I'm hoping he's right. I'm planning on buying some more once I get more money.
November 06 2010 at 10:45 PM Report abuse Permalink rate up rate down ReplyThe problem with saying appl is a bubble about to burst is it goes in the face of everything that has happened this year. Earnings reports have regularly lowered PPE ratios making Apple an increasingly safer option. A year ago they were in the 40-45 range, as of the last earnings report it is now around 23. At the height of the google bubble they were in the 150+ range.
Also to compare Apple to google isn't a fair comparrison, nor is it a fair comparison to liken Apple to Microsoft or HP. They truly are in a league of their own as they dabble in computer hardware and software, mobile technology and software, advertising, enterprise networking (well, that closed this week), entertainment distribution, and R&D.
I am holding my Apple stock for now because of the fact that every time I go into any one of the four Apple stores in my area I have to wait at least 5-10 minutes to be served as all the store staff are usually brining computers out from the back to sell. I was in the store yesterday and in a 10 minute period I counted 23 new MacBook Airs, Pros, white Macbooks come out from the back.
As long as people are willing to line up for a new product, selling it out in a matter of hours - the bubble isn't going to burst.
That said, should Steve Jobs get sick again, the stock will suffer. While the company showed they can still release top quality products without him, he has been raised to a god-like level amongst Apple followers. His death would not have a major effect on sales, but trust in the company's ability to release novel, high quality products would be in jeopardy and investors will run - As bad as it sounds, this would make for a good buying opportunity though.
AAPL may not be a bubble. GOOG and AAPL are not the same, IMO.
November 06 2010 at 6:55 PM Report abuse Permalink rate up rate down ReplyWhile this will likely happen - maybe it's just a matter of waiting long enough - William V. Power, and and other economic analysts who wish to be listened to, should first demonstrate their credentials by showing us their written predictions of the GFC.
November 06 2010 at 4:46 PM Report abuse Permalink rate up rate down ReplyWhile I agree with the principle that analysts need to show some form of evidence that they can make fairly intelligent predictions (no idea if this particular analyst has or not), the financial crisis was a bit more complicated that a single company's future stock price expectations.
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