“The general sentiment around Apple (AAPL) remains very positive. Almost 70% of sell-side analysts rate it a Buy and only 6% rate it as a Sell,” RedWaveResearch writes for Seeking Alpha. “I think Apple’s best days are behind it and that is has already hit peak stock valuation and earnings power.”
“Steve Jobs never seemed to concern himself with short-term Wall Street expectations, but he was constantly innovating and adding value to shareholders in ways they often didn’t understand under after the fact,” RedWaveResearch writes. “Can the same be said about Tim Cook? There hasn’t been any truly innovative product to come out since he became CEO. While Apple’s stock performed well soon after his appointment, much of that success can be traced back to products put in place by Jobs.”
“I think Apple is a name that is best traded, rather than holding for the long-term,” RedWaveResearch writes. “At the current price, in the $530s, I don’t think Apple is a short-term buy. I would consider buying the company under $450 and selling at anything over $550.”
Read more in the full article here.
MacDailyNews Take: iCaled.
At Apple, disruptive innovation happens sporadically and then each product is refined in quest of perfection.
• iPhone was released 5 years, 7 months, and 19 days after iPod.
• iPad was released 2 years, 9 months, and 5 days after iPhone.
• Tim Cook has been Apple CEO for 2 years, 6 months, and 18 days.
Related articles:
Apple can’t replace Steve Jobs, but it must try or something – March 12, 2014
Apple CEO Tim Cook: ‘There will be new categories; we’re working on some really great stuff’ – February 7, 2014
The myth of Steve Jobs’ constant breakthroughs – September 25, 2013
Tim Cook forever competing with Steve Jobs’ ghost – September 17, 2013
No.
There’s FAR more money to be made by generating hope for high prices, but continually selling when it’s high then rebuying when its cheap. It works best for huge events like announcements for new hardware.
Heck, if I was an investor, I’d pull that off all the time instead of sitting on the stock hoping it reaches 1000$. The strategy explained earlier could be even MORE profitable than sitting on shares acquired at 400$ until they reach 1000$.
Is AAPL a growth stock: I don’t think so, it’s too big.
Will Apple continue to innovate and disrupt markets: Yep
The question here and now is where do you want to place your money in a flat/negative market?
If you think of Apple only as the iPhone maker then perhaps large growth rates are difficult to imagine. Actually, Apple introduces new products that add to the portfolio.
iTunes is a $20B business and growing.
iPad is a rapidly growing business.
Just for the sake of argument, if the iWatch sells at the rate the iPad and iPhone do then this could roughly double the revenue.
The point is that rapid growth is still possible.
Incremental improvements can be made on a 6-month schedule.
Revolutionary products that disrupt entire industries? Those take a few years.
These analyst nimrods also forget that for Apple, they not only have to develop the revolutionary product, they have to put in place the entire supply chain to enable them to deliver TENS OF MILLIONS of units at launch. That doesn’t happen overnight.
The tax rate on short term (1 year and pay only 15-20% capital gains tax, as well as get the benefit of a years worth of dividends as well.
Also, don’t forget the buy/sell transaction fees
Sorry, my comment was cut off. The tax rate on short term capital gains is the same as one’s ordinary income. For someone in a higher tax bracket this marginal tax rate can be well over 40%. It may be better to hold the stock for >1 year and pay long term capital gains at 15-20% and also get the benefit of a year’s worth of dividends.
Well over 40%? In what country do you live?
Federal is 39% and California is 10% for those in the highest tax bracket…what country do you live in?
Most probably in a country where healthcare is not reserved for the rich and young black men do not have to sign up to fight in Irak and Afghanistan to be able to support their families…..
AAPL needs to be a long-term investment. The difference between $450 and $550 (the recommended buy and sell points in this article) will be mostly irrelevant in the long run.
There was a big short-term high point in AAPL just a few years ago. It was over $200, and then a financial crisis hit and AAPL dipped below $80. And some people were asking, will AAPL ever get above $200 again. Even if your timing was REALLY bad and you bought AAPL at $200+, you’d be up more than 2.5x today.
Today, AAPL is about $530, and some people are asking if it will “ever reach $700 again.” In the future, AAPL will DIP below $1000, and some people will be asking… Some people have short memories.
Well said.
Truthful answer to the question posed by the headline:
Maybe – maybe not.
Doesn’t matter if you’re Forrest Gump.
😉
All the rest of us know what we paid and what we need to make to feel like we made a good net.
Any other mis-calculations are just lips flapping in the wind.
Mathias – if you take into consideration your in and out costs, churning may not work for you.
Apple has as much chance of reaching $700 as you have of walking naked to the North Pole.
Polar bears, penguins, … do it all the time naked. Your problem is, you are not Apple and you lack all that Apple invested in their ecosystem. Apple isn’t a naked person.
If Apple or anyone else makes an aftermarket entertainment system for almost any old car or new with CarPlay and all you had to do was slip an iPad mini or oversized iPod touch into the unit. What would just that add to Apple’s bottom line?
Almost every commercial organization in the USA now has a iPad in their people’s hand or iPhone in their pocket. What will that do to the bottom line at Apple as it spreads all around the world?
iBeacon …
Billion dollar server farms all around the world that know one is looking for because Apple hasn’t pointed them out to the talking heads yet. …
Just because you can’t see it or understand it doesn’t mean it will not happen. How long can an undervalued companies stock that grows 20% to 40% a year stay where it is while dumping billions in the bank.
Naked clueless village idiots every where you look these days.
In and out.. Sure it us more profitable if u can time yourself perfectly catching at lows and selling at highs! For this u need a crystal ball ! Or at best u are guessing on daily weekly,monthly,fluctuations!
Don’t forget the tax rate difference between long term gains and short term gains when u buy sell constantly..short term gain taxed at much higher rate
And add fees on top .
Also u have to consider the added issue of timing yourself to take advantage of dividends.
All in all not an easy thing to pull off unless u are constantly lucky!
As a final note. Apple or no other company has ever revolutionized the market on yearly basis… This is not how things work and it is naive to think that way.
On average apple has put out a blow out product once ever 3 to 4 years….
This year is the year and next is when we will see some game changers and growth as a result
Without a shadow of any doubt.
Apple is expanding internationally with an all star lineup of multiple solid gold products. There has never been this much revenue generated and product demand before. Only a blind person can’t see the growth which will be staggering.
Yes I think it will reach $700. Someday. Then it will drop. The same people who have lost money in the past year and a half will lose money all over again. Déjà vu all over again. It’s called greed.
Apple hit $700 when it was recording 100%+ growth YOY. As it’s gotten bigger it’s gotten harder to do that.
Too much logic in this one. Gosh. What can we do? Hmmm…
Just have to say, “Well put, JA”…
When Apple buys SpaceX and Elon Musk becomes CEO.
Those traders like salable drama.
I’m worried. You mean all that AAPL I bought at $6 will never reach $700? Darn!