Would You Take an iPad Over an iShare? (AAPL)
With shares of Apple (Nasdaq: AAPL) now trading over $500 for their first time, it may be time to test where investors stand about the future prospects of the stock.
With shares now as expensive as one of its most popular product - the iPad - the only way to see if investors are still buying into this rally is to offer them the choice; would you take a share of $AAPL over an iPad?
Around the office answers may be mixed as some look to the long term potential of the stock, while others highlight the recent run up and would take the iPad and run.
Shares of Apple are trading up 25 percent year to date, versus the S&P 500 which is up 6.9 percent year to date.
$500 may have been the price point for many investors, but analysts are sticking with their guns as the consensus among 48 financial firms is $578.47, according to SI Ratings Insider.
On a probability analysis chart, with a probability range of 99 percent, shares of Apple have a 64.1 percent probability to surpass $551.31 and a 63.6 percent probability to fall below $454.61 by July.
To bullish investors, Apple could be considered many different type of stocks. A growth stock, given its 116% EPS growth last quarter. A value stock, as it is trading well below the market multiple. Bulls will also note that speculation about the release of new products will continue to drive the stock's momentum alongside its blowout earnings. The company's pipeline looks very strong in the near term with the new iPad 3, iPhone 5 and iTV, all likely coming before the end of the year.
While bulls will use different arguments to justify the stock going higher still, others believe that era may be coming to an end. How can a $500 billion company continue to grow at this pace? Also, with the brains behind the organization, the late Steve Jobs, no longer around, how will Apple keep its golden iTouch?
As Apple continues to reach for the moon the battleground between bulls and bears is taking shape.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
With shares now as expensive as one of its most popular product - the iPad - the only way to see if investors are still buying into this rally is to offer them the choice; would you take a share of $AAPL over an iPad?
Around the office answers may be mixed as some look to the long term potential of the stock, while others highlight the recent run up and would take the iPad and run.
Shares of Apple are trading up 25 percent year to date, versus the S&P 500 which is up 6.9 percent year to date.
$500 may have been the price point for many investors, but analysts are sticking with their guns as the consensus among 48 financial firms is $578.47, according to SI Ratings Insider.
On a probability analysis chart, with a probability range of 99 percent, shares of Apple have a 64.1 percent probability to surpass $551.31 and a 63.6 percent probability to fall below $454.61 by July.
To bullish investors, Apple could be considered many different type of stocks. A growth stock, given its 116% EPS growth last quarter. A value stock, as it is trading well below the market multiple. Bulls will also note that speculation about the release of new products will continue to drive the stock's momentum alongside its blowout earnings. The company's pipeline looks very strong in the near term with the new iPad 3, iPhone 5 and iTV, all likely coming before the end of the year.
While bulls will use different arguments to justify the stock going higher still, others believe that era may be coming to an end. How can a $500 billion company continue to grow at this pace? Also, with the brains behind the organization, the late Steve Jobs, no longer around, how will Apple keep its golden iTouch?
As Apple continues to reach for the moon the battleground between bulls and bears is taking shape.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- Apple (AAPL) Snubs Google (GOOG) in China, Opts for Competitor
- UPDATE: Lowe's (LOW) Beats Q1 Views Amid Lagging Seasonal Demand; Issues Light FY12 Earnings Outlook
- UPDATE: Bristow Group (BRS) Reports Better-Than-Expected Q4 Results; Offers FY13 Outlook
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Standard & Poor's, Steve Jobs, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
