Apple Inc. (AAPL): Will WWDC Be A Catalyst?

Apple Inc. (AAPL): Will WWDC Be A Catalyst?
<a href="">ElisaRiva</a> / Pixabay

Apple Inc. (NASDAQ:AAPL)’s stock just can’t catch a break, but that might change next week. The company’s much-anticipated Worldwide Developers’ Conference is next week, and some believe this will be an important catalyst for the company’s stock.

Apple Inc. (AAPL): Will WWDC Be A Catalyst?

Apple’s Long Fall From Great Heights

Since WWFC last year, shares of Apple Inc. (NASDAQ:AAPL) have fallen by about 20 percent. The drop-off is even more significant since the release of the iPhone 5. Since then, the company’s stock has dropped almost 36 percent. Of course the stock has still managed to gain about 17 percent since it hit rock bottom about two months ago, but it still hasn’t recovered to Apple Inc. (NASDAQ:AAPL)’s former glory.

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The Motley Fool’s Rick Munarriz believes it’s possible that WWDC will be an important catalyst for Apple Inc. (NASDAQ:AAPL), and he’s certainly not alone in that expectation. However, he says the conference probably won’t be enough to bring the stock back up to its former heights.

Lack Of Hype Ahead Of WWDC?

We’ve heard plenty of ideas about what Apple Inc. (NASDAQ:AAPL) will introduce at WWDC next week, including everything from possibly crazy reports that we’ll see the iPhone 6 to indications that we’ll see an iRadio service. It’s generally expected that iOS 7 with numerous changes will be unveiled at the conference. There’s also a buzz surrounding the idea of new Macs, which is interesting since the desktop PC market is falling off so quickly.

Investors who are looking for a crumb however, probably realize that shares of Apple Inc. (NASDAQ:AAPL) are trading at around 11 times the company’s projected earnings for this year. And when comparing the company’s cash position and looking at enterprise value, the valuation is even lower.

In short, anything the company says or does that’s even remotely innovative next week at WWDC is likely to move the stock higher. Investors are just looking for some signs of life, which the company hasn’t really given any time recently. Competitors have turned up the heat on Apple Inc. (NASDAQ:AAPL), so investors just want to know that the company can still turn out the innovations it was once known for.

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