Apple stock to reach $225 level?
updated 09:50 am EDT, Mon October 8, 2007
Apple stock to hit $225?
Although having only broken the $160 mark on Friday, Apple's stock value may yet go as high as $225, one analyst predicts. The company will announce its fourth-quarter results on October 22nd, and revenues of $6 billion are predicted, with earnings-per-share (EPS) of $0.83; yet more optimistic appraisals suggest revenues between $6.2-6.3 billion, with $0.87 EPS. By September 30th, 2008, concensus suggests these figures may climb as high as $29.7 billion with $4.48 EPS, due to several ongoing developments.
Apple is for instance in the middle of a major upgrade cycle, having recently introduced new aluminum iMacs, a new version of iWork, and several new iPods including the iPod touch. Critically, the iPhone is only beginning its reception with the public, and Apple has recently announced that production of the device will grow from 3.6 to 4.8 million units by the end of the year, without accounting for European iPhone deals or next year's Asian introduction. Revenues for the device will only be fully realized at the end of the first two-year AT&T contracts, and the price cut from $599 to $399 has been drawing in customers that might not otherwise have ventured near.
The new iPods have been generating positive reviews, the Seeking Alpha analyst says, and the installed base is now over 110 million. Neither are the units eating into iPhone sales, "Apple insiders" are said to claim. It is predicted meanwhile that the immediate fourth-quarter results will show that Apple is increasing revenue from its new Macs, bolstered an extra amount by the high margins of add-on software.
Arguing for a $225 price target, Seeking Alpha says that following the results announcement, a number of analysts will move their price targets to at least $200. Apple's market value may also soon eclipse that of IBM, as the latter is at $158 billion, while Apple has already grown to reach $140 billion. An overtake may happen by the beginning of 2Q 2008, and possibly earlier.
Anal-ysts
10/08, 10:06am reply
Pump and dump!
Macola
Mac Elite
Joined: Mar 2001
holy cow...
10/08, 10:09am reply
my $2,700 investment in AAPL is now worth ~$50,000. Why oh why did I not buy a lot more!
climacs
Fresh-Faced Recruit
Joined: Sep 2001
climacs
10/08, 10:18am reply
I hear ya man!! My $1000 is now worth $25k!! I should have mortgaged the house!!
eldarkus
Fresh-Faced Recruit
Joined: Feb 2004
in at what price?
10/08, 11:01am reply
what price are you guys in at? less than $20/share? I'm in at $40 and happy with the climb, but damn, you guys are rolling in profit! congrats!
yes, we all should have bought more! and I see Google crossed over $600 this morning.
83caddy16v
Forum Regular
Joined: Sep 2000
re:in at what price?
10/08, 11:27am reply
i invested just shy of $3000 when it was at $62...too bad the stock won't split from what I hear.
ydnar1
Fresh-Faced Recruit
Joined: May 1999
I got in just above $6!!!
10/08, 12:08pm reply
I got in just above $6 ($12 pre-split!). Now its worth over $100,000!!!!!
It's going to $300 a share in 18 months!
mjgrothaus
Fresh-Faced Recruit
Joined: Apr 2002
pity me
10/08, 01:01pm reply
I waited to get in until it reached $67 in Feb. 06. I'm only averaging 7% profit...per month!
TheBum
Mac Enthusiast
Joined: Sep 2001
C'mon Apple...
10/08, 01:02pm reply
These analysts better not be stock-teasing me or I'll be a very unhappy camper. Don't just keep saying it's going above $200 when the stock is sitting at $163 or so. That's a effin' huge gap.
My joy won't be complete until the iPhone outsells all BlackBerrys by two to one.
Constable Odo
Fresh-Faced Recruit
Joined: Aug 2007
in at 10...
10/08, 01:27pm reply
...daddy gets a new pool and poolhouse :-)
i love listening to the "market experts" who would have had me sell at least 10 different times over the last several years.
except for some speculative biotech stuff where my strategy was gambling ("buy 10 and hope 1 is a landslide"), i always buy companies i research, believe in, and live with in my daily life. and i don't buy it unless i'm comfortable holding them for the medium to long term. i don't sell them on news announcements that cause dips, or market downturns. that's when you LOSE.
every single pick has outperformed the market by multiples.
rtbarry
Fresh-Faced Recruit
Joined: Aug 2001
re: in at what price
10/08, 03:22pm reply
bought 150 shares @ $19.50, pre-split, or $9.75 split-adjusted. It's in my retirement account so fortunately I can't touch it or I would be tempted to cash in at least part of it. Instead I guess I'll just have to watch it keep soaring for a while! My only dilemma is, at what point do I cash at least part of it in to lock in my gains and diversify? It's a good problem, but AAPL is going to form a disproportionately large share of my portfolio at this rate!
climacs
Fresh-Faced Recruit
Joined: Sep 2001