Apple Computer shares surge to new all-time high on video, Mac expectations

“Shares of Apple Computer Inc. on Wednesday jumped to a record high as investors made bets on growth in its digital music and video businesses, analysts said,” Lisa Baertlein reports for Reuters. “Shares of Apple, maker of the market-leading iPod digital music player and Macintosh Macintosh computers, closed up $2.45 to $59.95 on the Nasdaq, a gain of more than 4 percent. Apple dominates the digital music business it helped establish and its growth appears to be accelerating amid concern that industry sales are less than robust. ‘When everyone else is slowing and you’re not, it means share gains,’ American Technology Research analyst Shaw Wu told Reuters.”

Baertlein reports, “Compounding confidence was Apple‘s announcement earlier this week that its iTunes online service sold 1 million videos in less than 20 days… ‘I think the 1 million video mark in 20 days gives people comfort that video isn’t a dud — that it’s being accepted,’ said Rochdale Research analyst Daan Coster. Apple‘s PC business is also growing faster than the overall market. Analysts said the upward momentum in Apple’s stock may be a result of investor movement into names already showing good results with credible prospects of growth. ‘It’s the flight to quality. Investors want to own the names that are doing well,’ Wu said.”

Full article here.

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Related article:
Apple Computer shares approach $60 mark, hit new all-time high in morning trading – November 02, 2005

20 Comments

  1. “I bought at $7.50.”

    You must either have purchase a LONG time ago or you are adjusting for splits because AAPL has not shown a daily price of 7.50 in memory.

    Either way, good for you…and me too !!!

  2. Let’s be honest..

    It’s not going to last forever folks, Apple is riding high because of certain blindness to economic reasons in the US market. But that blindness will soon dissipate and is doing so right now.

    1: Lack of interest in the Quad, the dual processor 2’s and 1.8’s are still carrying folks over just fine.

    2: iTMS sales have tapered off, people have loaded up their iPods or are quickly realizing how expensive it’s starting to get, they are also realizing they quickly tire of their 300 average song Library. They can’t as easily spring for another 300 songs because the cost of living is rapidly rising and the minimum wage increase failed to pass in government, so that means a delay in everyone’s cost of living increases, which means people are cutting back.

    3: Hurricane related effects, billions of dollars has been borrowed by the US Government to pay for this damage, plus Homeland Security which has to come from somewhere, eventually Bush will be hiking taxes after the new year. Also the rising fuel costs haven’t been fully trickled down in the economy, that’s going to hurt with rising prices after the new year.

    The time to sell is NOW take your profit and sit, watch and wait until next spring.

    If things are looking up, then play a portion.

    I’m normally bullish, but we have had a good ride and it’s time to be conservative.

  3. MacDude – you are normally so much more upbeat. I would like to offer an agreement that it won’t last forever and a decent that now is the time to sell…

    (1) This stock price doesn’t have a thing to do with Quad cores.

    (2) One report says digital music sales in general are tapering off. Of course they give no source data. So though your gut and every other market indicated tells you otherwise, you listen to this one report? come now. And not being able to easily spring ofr another 300 songs is the reason they will STAY with iTunes and iPod – because the cost to switch to WMA is too high. I have over 1000 songs from iTMS and I’m not going anywhere! Those effected by minimum wage increases aren’t spending their money on iPods and broadband to download songs. The US minimum wage is a subsistance wage. They are spending money on rent and food. (Okay, there are teens with afterschool jobs who are effected but their few hours per week wouldn’t effect a $0.99 buying descision.)

    (3) The overall US economy continues to remain stable – inspite of all that you mentioned. And there is the Krispy Kreme effect that is happening to Apple as well. KK did very well back in 2001 when the tech boom was busting. It did so because even though people were having their cars reposessed, they could still “treat” themselves to a low cost doughnut. Same thing with a $0.99 song, even if you loose your job you can lift your spirits with your favorite song.

    I would encourage anyone who doesn’t hav ethe stomach for investing or the budget to loose money invested to sell right now. Investing, and particularly momentum investing in stocks like AAPL is for people who will ride the Bull, because it can’t stomp you if you stay on it.

    MDN word: case

    (3)

  4. Macdude,
    Lack of interest in the quad, it’s not even out yet. People don’t have to spring for another 300 songs at least not at one time and minimum wage come on dude. ” take your profit now and sit” why so the price drops and you can buy more shares. The good ride isn’t over so just keep on joking.

  5. MacDude,
    Yo bro…

    remember Microsoft in 1986
    remember Dell in 1996

    Ten years from now people will say “shoulda bought AAPL in 2006”
    pile up now, while the gettin’ is still good.

    MW= held (as is held ’em to infinity.. and beyond!)

  6. Lets be Honest.

    Video is not gonna be what music was to Apple. Sure, Apple sold a bunch of videos, but how many of them were out of curiosity? I know I bought two out of curiosity and I don’t see myself buying tiny videos – it’ll break the bank, and they are WAY TOO SMALL.

    Mac share increasing, yeah thats the big one. Apple is gonna have a huge Christmas, but y’know, I sold my shares today. I’m taking my money and putting it into my house. Maybe I will will lose out but somehow I think it’s gonna be awhile before Apple can make it to the next tier. Maybe that will be the MaciNtels. I hope so. Maybe I can invest again in Apple in about a year. Eventually iPods will reach a saturation point, and also I definitely think the US Economy is at risk right now. Thats my 2 cents.

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