Apple shares crack $80 with gusto

Shares of Apple Computer, Inc. (AAPL) are up in morning NASDAQ trading, cracking the $80 mark.

Share rose $1.55, or 1.94%, to $81.50 on heavy trading volume of 10,246,211 shares.

Apple’s 52-week high stands at $86.40, set on 01/12/2006.

Related articles:
Soleil reiterates ‘Buy’ rating on Apple, raises target price – October 19, 2006
JMP Securities reiterates ‘Strong Buy’ rating on Apple, raises target price – October 19, 2006
Banc of America reiterates ‘Buy’ rating on Apple, raises price target – October 19, 2006
Analysts now clearly see Apple Mac resurgence – October 19, 2006
Analyst: Apple formula working to lead Mac resurgence, Apple’s growth rate should accelerate in ‘07 – October 19, 2006
BW: Record-breaking quarterly Mac sales put Apple into the running for a top computer-maker spot – October 19, 2006
Jim Cramer: Apple’s quarter showed how poorly the also-rans are faring – October 19, 2006
Apple profit rises 27%, Mac up 30%, iPod up 35%; stock jumps – October 19, 2006
IDC: Apple Mac attained 5.8% of U.S. market share in Q3 06 – October 18, 2006
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Apple Financial Results Conference Call Q4-2006 Live Notes – October 18, 2006
Apple shares rocket 6.5% in after-hours trading on stellar earnings report – October 18, 2006
Apple Q4 earnings results: $546M net profit on $4.84B revenue, sold 1.61M Macs, 8.729M iPods – October 18, 2006


  1. And the silence from the MDN financial wizards (“SELL SELL SELL,” “Stock Boy,” “Peterson,” et al.) is deafening.

    As that great philosopher of the silver screen Bugs Bunny might intone . . . “What maroons!”

  2. Dave, Apple splits it’s stock usually around 85-90. In the beginning of this year Apple was over-inflated at 85, after the flurry of a great Christmas. Now Apple is solid at 81, and will creep up to 90 in anticipation of another great Christmas. Yeah, I’d say a stock split is in the near future. I wouldn’t be surprised to see it roll post split to 60 after this Christmas. My 2 cents.

  3. When the price of a share of stock gets too high for a normal person to buy round lots (100 shares), companies do a 2 to 1 split, doubling the amount of outstanding stock, and the stock price is cut in half. Usually you want to buy the stock right before the split because it usually goes up a couple of points soon after the split.

  4. I don’t think Apple will split the stock until all the earnings have been restated with finality. Apple has in the past waited until the stock was trading in the 100s before deciding to split, too. Deciding when to split is largely arbitrary, as a split does not intrinsically change the value of the company on the market.

  5. The AAPL breakout above $80 today may not be sustainable. The stock is actually riding on the strength of the broader market (Dow, Nasdaq, S&P 500).

    AAPL itself is significantly overbought. Here’s the evidence:
    1. The daily RSI(5) indicator is at 86 (anything over 70 is overbought)
    2. AAPL is above its upper Bollinger Band, which is bearish – shares tend to snap back and close inside the Bollinger Bands.
    3. The MACD line and MACD signal show a negative divergence with the stock price. This is almost always bearish – it shows the stock has gotten ahead of its moving averages, and stocks tend to snap back.
    4. AAPL is approaching significant resistance ahead, between the $81 and $85 levels, with an intraday high of $86.40 (set on January 12, 2006).
    5. Today’s volume as of 13:49 EDT is 19.0 million shares and will probably reach ~25 million shares by market close. The average volume is about 25.7 million shares, so at best today’s high will be set only at average volume. This is mildy bearish – you want new highs set on high volume, not so-so or average volume.
    6. Today’s new highs have been set on declining volume, as compared to the 3 trading days after the earnings report.
    7. The broader market (DJIA, Nasdaq, S&P 500) are all up significantly today, which helps raise AAPL. This isn’t bearish in and of itself, but if the broader markets correct (which is likely, after the long summer rally), AAPL will probably be brought down with them.

    Conclusion: AAPL is trending up, but the breakout abover $80 may not be sustainable.

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