Apple Jumps Right Back Above 600

Updated on

Apple Jumps Right Back Above 600
Click To Enlarge

After Apple Inc. (NASDAQ:AAPL) posted its incredible earnings report yesterday after the close of the market the company’s stock jumped right back over 600 in after hours trading. The company has faced a couple of weeks of difficult trading after fears earnings would be down and the company’s performance later in the year would not go as expected. With the shares trading at around 611 at time of writing.

The company’s stock had fallen from a height of over 640 on April 9th to almost 80 points below that at close of market yesterday. The firm’s investors were worried that iPhone sales would fall later in the year due to major carriers refusing to subsidize the company’s handset later this year.

The firm responded to worries in the same way it has for the last several years. It released a blistering earnings report beating analysts estimates posting the best second quarter ever for the company. Reporting sales of 35.1 million iPhones and 11.8 iPads was an eloquent rebuttal to worries that the stock was overpriced.

Where to now for the world’s most valuable company? Price targets for the next twelve months remain for the most part huge, with $1000 being at the upper end of the scale estimated by analysts. The company’s future success will rely on its ability to roll out the iPad in educational and enterprise institutions, the introduction of an exciting new iPhone model and the possible release of a new product, perhaps an Apple television.

Along with that the company needs to maintain the high levels of sales in its flagship products. News from At&T and Verizon revealed that iOS activations were down in the first quarter of the year signalling that the market in the US is possibly reaching full capacity. Apple managed to increase its sales in China, the world’s largest market in order to combat the change in US demand. The firm will need to continue its roll out in emerging markets in order to continue its rise.

~Success abounds for the once forgotten Cupertino company. With results like this and products like the iPad it will continue to race far ahead of the other tech companies for the foreseeable future. It’s mix of innovation and marketing has managed to secure it divine status that has never before been seen. There is no other company like Apple and that’s why its up above 600 today.

Leave a Comment