Apple attracting new investors on strength of Jobs’ vision of innovative products

“The more than 50 percent rise in Apple Computer Inc.’s stock price this year has mirrored the brisk sales of its market-leading iPod digital music player and growth at its retail stores,” Duncan Martell reports for Reuters. “In the view of some analysts, the share price’s ascent also reflects a transformation in the way investors are willing to value the Cupertino, California-based company, innovator of the first operating system to make personal computers friendly to everyday users.”

Martell reports, “Once seen as a value play that traded at little above its cash value, Apple’s stock is now attracting long-term and momentum investors sold on Chief Executive Steve Jobs’ vision of the company as a high-margin style-setter at the hub of an emerging ‘digital lifestyle.'”

“‘Longer-term investors are looking at it right now and saying Apple’s got these great products out there and more coming and we trust them,’ said analyst Shannon Cross at Cross Research, while noting that there are now likely a sizable number of momentum investors in Apple,” Martell reports. “‘Part of it is betting on Steve Jobs,’ said technology analyst Tim Bajarin of Creative Strategies, of the stock’s rise. ‘Even though the Mac size of the business has not grown rapidly, he keeps pulling interesting rabbits out of his hat.'”

“While the stock may appear overvalued given its strong performance this year, some investors believe the shares are likely to end the year still higher,” Martell reports. “Jobs agrees. ‘We think that strategy still has a lot of legs,’ Jobs said in a recent interview, referring to the digital lifestyle. ‘If investors are catching up with us, that’s terrific and hopefully they’ll continue to follow us.'”

Full article here.

13 Comments

  1. I actually tried to talk my Step-Father into purchasing AAPL when it was still around the $18-$19 range. He had about $200,000 lying around burning a whole in my eyes, when I saw potential. He called his investor and asked about Apples’ stock (of course this was when Apples’ stock was a “Sell”) and he told him not to buy it.. Go figure! Now he won’t admit he wished he had, but he knows now that I was right. If he would have done it according to how I knew then to do it, he would be above the half-million mark by now.

    .. but what do I know.. I’m just the ‘red-headed step-child’…

  2. Apple will not hit $45 per share in the next several years I’m afraid (if ever). M$ will not crumble under its own weight either. Tech stocks, in general, are a gamble these days. Stay away.

  3. I *DID* buy Apple at $14. Now I’ve tripled my money and I’m laughin at the analysts and their “What can this rock teach us about investing?” commercials. They don’t know zip. As late as August they were saying sell.

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