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AAPL Stock: 100.75 ( + 0.64 )

Printed from http://www.macnn.com

AAPL jumps to 2013 high on Black Friday in half-day session

updated 06:40 pm EST, Fri November 29, 2013

Stock's recent rise reflects expectations for record quarter

Apple's stock finally surpassed its previous 2013 high on Friday, beating the $549.03 mark to close at $556.07. The former high mark came on January 2, reflecting a year that saw the company doing brisk business in revenues, but penalized by Wall Street for lacking any category-redefining product or service, and being slow to update existing products. The perception -- not wholly accurate -- that Apple was losing influence and marketshare also played a role.

AAPL Black Friday session
AAPL Black Friday session


Despite the advice of activist investors such as Carl Icahn, AAPL doesn't appear to have significantly benefitted from its initiation of a sizable quarterly divided and an aggressive stock-buyback program, even with dividend payout increases throughout 2013. Icahn and others have called for more aggressive moves, including a larger stock-buyback program that they believe will intensify investor interest in Apple, causing a rise in the share price. Instead, Apple's recent steady increases over the summer look to have been driven by two primary factors: anticipation of new and refreshed products, and the sales results of said products.

The stock tumbled in the early months of 2013 and again in June, giving first-time investors a pair of golden opportunities to get in and make some serious money -- savvy investors who bought AAPL at its low point of around $400 in the spring saw a 39 percent return on investment in just seven months, with the stock likely to continue generally rising on expected strong sales and revenues over the holiday season. Apple itself took advantage of the lows, retiring some $16 billion in stock in the third quarter of the year alone -- a move that would cost it an additional $4 billion were it to buy that same stock now.

NASDAQ, the exchange on which Apple and most tech companies are listed, also saw a record high on Friday, closing at a 13-year high of 4,059. The surprising rise on Friday was due primarily to technology stocks, bucking losses on the day for both the Dow exchange and the S&P 500. Apple's market cap once again sits above the half-trillion dollar mark, with its price-to-earnings (P/E) ratio sitting at 14 and earnings per share (EPS) at nearly $40.


AAPL year-to-date
AAPL year-to-date




by MacNN Staff

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Comments

  1. iphonerulez

    Dedicated MacNNer

    Joined: 11-28-08

    Definitely not a stock to be trifled with. Apple can't be trusted at all in beating expectations. Tim Cook always tries to cover up Apple's failings and on earnings it's always Apple shareholders who get the shaft in a big way. After last year's Apple share price collapse, I'll never put any trust in the company again. I'll expect any sudden price rise to be just a prelude to another fall. Apple never reaches any of those high price targets analysts give it like the best stocks do. Google, Amazon, Netflix and Priceline always seem to live up to those lofty price targets, but Apple usually conks out cold leaving shareholders to wonder what happened.

  1. besson3c

    Clinically Insane

    Joined: 03-03-01

    Originally Posted by iphonerulezView Post

    Definitely not a stock to be trifled with. Apple can't be trusted at all in beating expectations. Tim Cook always tries to cover up Apple's failings and on earnings it's always Apple shareholders who get the shaft in a big way. After last year's Apple share price collapse, I'll never put any trust in the company again. I'll expect any sudden price rise to be just a prelude to another fall. Apple never reaches any of those high price targets analysts give it like the best stocks do. Google, Amazon, Netflix and Priceline always seem to live up to those lofty price targets, but Apple usually conks out cold leaving shareholders to wonder what happened.




    Yet the stock is listed as a strong buy: Apple Inc. (AAPL) Analyst Stock Recommendation - NASDAQ.com

  1. Spheric Harlot

    Clinically Insane

    Joined: 11-07-99

    Apple has been jumping from success to success.

    Apple not beating expectations, but beating their own guidance, and this is somehow an indication that APPLE cannot be trusted!?

    Analysts are full of shit, and stock price has been massively manipulated in the past.

  1. besson3c

    Clinically Insane

    Joined: 03-03-01

    Originally Posted by Spheric HarlotView Post

    Apple has been jumping from success to success.

    Apple not beating expectations, but beating their own guidance, and this is somehow an indication that APPLE cannot be trusted!?

    Analysts are full of shit, and stock price has been massively manipulated in the past.




    I don't know about manipulation, but I can see that analysts have unrealistic expectations WRT tech innovation. Apple's stock has always been erratic because of the company's secrecy, and because their big breakthrough products cause explosions in their stock price when they do occur.

    The problem is, it is unrealistic to expect the next iPhone, the next iPad, iPod, or whatever all too often, and Apple seems to be unfairly shat on when they don't pull the next big thing out of their ass every year. Some people believe that this is a sign of Apple slacking, and don't consider that technological advancements don't operate on some sort of linear curve.

    I'm also skeptical that people switch to other products in droves because certain specs (e.g. screen size, battery life expectancy, etc.) don't seem right to them.

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