updated 01:55 pm EDT, Fri October 5, 2007
Apple's stock breaks $160
Shares of Apple Inc. have closed above $160 for the first, gaining 3.33 percent or $5.21 by the close of trading Friday (final trading price: $161.45). The stock is up over $24, or 18 percent in the past month, and has more than doubled in the past year. The reasons for the surge are unclear, though rumors of opening iPhone development and inclusion of HD videos in iTunes could be catalysts. In late August, Apple surprassed Google's market capitalization after going on a rollercoaster ride. During one week, the shares went from about $124 on Wednesday to about $112 on Thursday, then back up to about $122 on Friday. The reason for the dip, and others in the past month, may have been pure profit taking by investors who have seen tremendous gains in the stock this year. [updated]
In Late September, Apple CEO Steve Jobs has received a subpoena from the US Securities and Exchange Commission, according to two anonymous sources. This is not a part of an investigation, say reports, but rather for deposition in a lawsuit against Apple's former general counsel, Nancy Heinen. The SEC targeted Heinen in late April, accusing her of backdating stock options for Jobs and other Apple executives. Jobs in particular is said to have been given 7.5 million backdated shares, and Apple itself admits that Jobs suggested profitable dates for options other than his own. Heinen's attorneys have requested the presence of 45 people for deposition, with an emphasis on granters and grant recipients.
On September 24th, Citigroup analyst Richard Gardner raised his earnings estimates and price target for Apple, saying he expects the company sell more Macs than expected during the quarter ending on September 30th. The price target was raised to $180 from $160.