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Apple (AAPL) Shares Bounce Back on Market/iPhone Confidence

Shares of Apple Inc (AAPL), surged both late yesterday afternoon and early this morning as the market and Wall Street begin realizing the company’s premium positioning. As the stock market fights its way through these difficult times, Apple is believed to be the company to watch, as its swings dictate the market’s performance.

stock1Although Apple shares have been slammed overall, falling nearly 50% from their all time high of $202, which they hit late last year (2007). The company is positioned extremely well for the next 14-16 months, while their competitors might be hit much harder during this economic downturn.

Not only can their enormous pile of cash (which sits around $25 billion) be likened to an enormous cushion, but recent information released by Apple during the Q4 Earnings Call, explains their long-term revenue plans/numbers, with both the iPhone, and general subscription based revenue over time. It is staggering. Andy Saky from Bullish Cross has been cited all over the web for taking Apple’s released numbers, and reconstructing them to reflect Apple’s true iPhone sales. Those are staggering as well.

As some have already realized, “The iPhone Revenue Bomb” is a much bigger deal than many had expected. Attempting to analyze and understand the true long-term potential that the iPhone has, can truly be mind-boggling. As the company and product line grows and diversifies, global reach and positioning will increase as well. Apple will continue to add iPhone distribution points, lower the price, introduce new (lower/more expensive) models, and overall cut costs where it can, while making sure that anybody in the world who wants an iPhone, can get one… Cheap.

“Apple is the best run company in America,” Jim Cramer recently claimed. “Watch Apple… How they move determines how the market will react,” Cramer continued. “We always have a stock that the rest of the market piggybacks from, right now it’s Apple.”

Pile on a brand new notebook line just in time for the holiday season, a revamped iPod line, ever-growing market share, and tenacious marketing, and you’ve got what many see as the stock to own.

Back on October 21st, Apple shares hit a major surge in after hours trading, bringing the stock up to $104.25, up 13.95% from $91.49. Currently, Apple shares are hovering above $105, up 5.20% from their previous close at $99.91.

Disclosure: Long AAPL

Comments [4]

4 Comments to “Apple (AAPL) Shares Bounce Back on Market/iPhone Confidence”

jojo22 @ October 29th, 2008 at 9:48 am
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I wonder if they’ll hit $80. It seems like it’s getting very close, but then… They bounce or rally back.

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KiltWearingJOE @ October 29th, 2008 at 10:46 am
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You’re not the only one debating this. I know a few people who are DEAD SET believing it’ll hit $80. I personally say NO WAY. But, you never know. Steve stepping down could send the stock into a tailspin.

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Aviv @ October 29th, 2008 at 11:26 am
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Same here, I know a few guys who think it’s definitely hitting $80. Right now it’s trading at a multiple of $15 times earnings. So, that’s pretty low, when the market realizes what’s going on. It’ll snap back. Just might take some time.

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Larry W. @ October 29th, 2008 at 10:56 am
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Jeez, the iPhone is just insanity. PURE insanity. The revenue that it will CONTINUE to bring in for Apple is mind-blowing. Think about it for a second. It just keeps going and going and going and going, exponentially. It’s crazy.

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