Looking at the 3 month chart. AAPL is doing what looks like a king's crown. Are sales fizzing out on the Ipad already? In a month I predict a downtrend unless Steve Jobs comes out with something fresh.
You want something fresh? How about the iPhone 4? In the pre-order process, it busted Apple's and AT&T's servers that they had to take orders by paper. You want to short it, go right ahead. It should be safe because I don't think AAPL share price will more than double.
If apple doubles it will be the largest company by market cap in the world, with 1/4 of the profit as XOM. Doesn't make much sense to me, but like the first person said, apple will need to continue coming out with new hit products in order to keep their stock prices at these levels.
I would think it's safe bet to say AAPL will break $300. There are 2 potential sales drivers that many people aren't considering. 1. iPhone 4 CDMA 2. iAds It's been shown in other countries that when Apple has multiple carriers, it does better in sales. iAds and the growing Apps markets will continue to have bigger impacts on Apple's bottom line. iAds is the potential blockbluster. Who knew internet ads were such big business until Google went public and showed what they were making.
Maybe, but i would still short it in the near future. At these prices there is more downside than upside. They will have to continue to come out with record profits in order to sustain their 24 P/E. And the prices may already reflect the new iphones. I mean even other tech giants such as Microsoft, and Hp are trading at ~14 P/E.
That's what they said when the stock was $120 and some said it could go to $200 and people tought that was impossible.
Cramer says to stick with it. Take what you will out of that Netflix also. I am waiting it out for the possible spike up and then I will begin to sell naked calls. Other than ATT sucking really bad and APPL appearing like they have not figured that out yet AAPL appears to have a lot going for it (and I don't own anything apple) I sure would not want to be short AAPL if they decide to split the stock. A 3 or 4 for 1 could give AAPL an effective $400 price without much of a push. 24 PE is high in relation to historic returns for stocks but $400 price relative to the number of shares now doesn't seem to be out of the picture. Especially if they drop ATT which does not appear to be doing AAPL any favors
I look at tech and "hot" sectors from history, and this high P/E trend is always a pattern. Then as the company settles down and it loses its "sexiness" they trade like normal companies. Which is why i bring about companies such as microsoft and hp. Even those companies had their phases of inflated prices due to expectations, and good performances.
Bad news regarding the iPhone 4's antenna. The reception bars can increase or decrease depending on how you rotate the phone. AT&T says it's Apple's problem.