AAPL is now worth over $700 Billion. The company had a record quarter ( understatement) thanks in part to sales of their iPhone 6 . The return on the stock this month is ~ 10.3 %.
Apple will hold an event in a few weeks to introduce new products. You can expect more detail and official launch date for the Apple watch , Macbook air "2", and perhaps an 12.9" iPad ( running full OS X ??) .
REUTERS reports that the tech giant asked its Asian suppliers to make 6 million units of its three Apple Watch models. At a starting price of $349 , the Apple watch is quite expensive and may be a concern for some investors. Can Apple really sell a watch that needs a different charger AND needs to be charged EVERY night ? o_O , only time will tell.
If the Apple Watch is a success , this could potentially add approx $ 5 billion/quarter. In any case , Apple remains a solid long positions, and may reach $150 by the end of the year , as many have suggested. Still long.
Cheers
Algo
Comments
YaKa
⋅
Interesting.
Also agree with Planetlearn.
i think there is a minor correction here.
Best case seems to me at 145/150 around july... that means all your events go well after a correction here that could be flattish/floored by 120.
planetlearn
⋅
Sure the long term story remains in tact and if you have a much lower cost basis why not hold on, but from a traders perspective or someone who would like to put new money in, Todays prices seem steep. Especially with some big hedge fund names dropping aapl and mutual funds needing to rebalance after a huge monthly run, Once can also argue that aapl may have another quarter or two of experiencing great sales with the iphone 6, but people keep their phones for a long time and another major phone upgrade won't come for awhile. Perhaps we are seeing the top of that cycle right now. I'm not sure about the watch, but it seems hard to believe that it will make a serious dent in apple's profitability. Time will only tell. Good luck and thanks for sharing.
AnbHfund
⋅
A strong trendline support is developing around 138 on monthly charts so trade wisely !! AAPL very near to its support ! AAPL Monthly charts tradingview.com/v/fZ7tCOy4/
AnbHfund
⋅
error - instead of support its resistance !!
Algokid
⋅
I agree with you both , I think a minor correction is due, perhaps a pull back to 115 - 120 range. Also , iPad sales , they keep falling quarter after quarter. What is Tim cook plan for that product ? . Thank you for your comments.
YaKa
⋅
My very humble opinion:
Apple did great in the last 30years... growing from cool for few to very cool for all.
imac ipod iphone ipad...
Now all their products eat into each other.
I reckon the iwatch will be a flop in the medium term if not on the first day.
Then comes the pricing: 14 times ebitda.
That means we expect apple to stay on top of the waves every year for the next 14 years (rolling).
They are better and smarter than nokia or blackberry which disappeared from the scene and there will be great innovation with cars systems etc but we can't expect them to edit a blockbusters every year... question of time before one product is not as attractive as the iphone was... it is not a big bet to believe it is just a question of time in a very competitive arena where technology progress is exponential.
see this article - One thing is clear.... Smart phones like dvd players will become a cheap commodity at some point and it will be more difficult to embed large margins in the price.
Algokid
⋅
the challenge for Apple will be to diversify their product line. Right now 80 % of revenue comes iPhone sales :?
Also agree with Planetlearn.
i think there is a minor correction here.
Best case seems to me at 145/150 around july... that means all your events go well after a correction here that could be flattish/floored by 120.