There is no reason for Apple’s stock price to be at $609

“Google took down all stocks Mobile on Thursday and Friday. CNBC had countless reports running that no one can make money in mobile,” Darcy Travlos writes for Forbes.

“Wrong,” Travlos writes. “Apple can.”

Travlos writes, “Apple has gross margins in excess of 40%, and 96% of Apple’s revenues are related to mobile. Concerns that the mobile market is “mature” are also overblown. Growth in tablets, mobile advertising, and smartphones continue to outpace overall economic or industry growth, making these growth sectors. Previous articles have detailed and quantified statistics to support a stock price for Apple of $1,000 over the next two years.”

Read more in the full article here.

[Thanks to MacDailyNews Readers “Fred Mertz” and “Arline M.” for the heads up.]

54 Comments

  1. This is pure market manipulation, concrete evidence of a broken and corrupt system. I could write for hours about this, but the bottom line for anybody paying attention is that there is no way AAPL shouldn’t be steadily rising over the past few months or more. It’s primary competitors (with the minor exception of samsung) are all underperforming, while Apple continues to be incredibly successfull selling premium products in a recession with no signs of slowing down. It the fucking second fastest public ally traded tech company, while at the same time being the biggest!

    As an aside, GOOG has inexplicably risen despite no indications that it is doing well, despite its 12 billion dollar loss in buying Motorola (which is still losing them money), and despite that they are getting the rug pulled out from under them by their largest source of mobile revenue (Apple). The only reason why it may have risen is likely due to the fact that just before the recent drop after earnings report, most of googles top executives sold off a bunch of shares. And google has over a dozen lobbying firms to ensure they don’t get investigated. Scumbags.

      1. I agree with you about AAPL and Goog!!
        Apple has proven it self during the 2008-2009 World recession, before that and up to Now!!! Record profits each quarter.
        I expect the same Record profits this coming week on Oct 25th.
        What are your AAPL share projections for 2013?
        Mine is AAPL = $829 before 2013 ends!

    1. concrete evidence of a broken and corrupt system

      EXACTLY. And of course these rat weasels want further deregulation. Yeah, that makes sense! Let’s vote their puppets into office and cut our own throats! That’s the ticket to prosperity! 😯

    2. AAPL is suffering from a lack of buyers right now. If you want the price to go up, convince a lot of people that it is worth more and they will buy it. If you think that the market is manipulated, you are right in that you have been convinced to not buy more or worse, you have been convinced to sell yours.

      Manipulation is not possible without you contributing to the attitude by what you do with your pocketbook. Buy AAPL and be quiet.

    3. When Apple stock falls it’s all a conspiracy. They’re out to get us. It’s the Trilateral Commission in league with a secret cabal.

      When Apple stock rises the same idiots and morons that moaned and groaned now claim the market justified Apple’s market stature.

      1. You pretty well nailed it. Those who claim conspiracy are probably not investors. Or at least not informed investors. And yes, they will be beating the drum as soon as Apple starts ramping up. It has happened forever. Nothing new here. Some of them are investors who failed to take profit when Apple was at its peak a month ago. They knew better. They really know better now. They will probably do better next time. But anyone who follows the stock knows that Apple drops before product releases and earnings calls. It happens like clockwork. It is virtually guaranteed every time. It happens with many, many stocks not just Apple. But these folks don’t want to hear that. Because it’s the truth (because they have to have something to complain about all the time ). Investors should be aware of this and invest accordingly. Buy and hold investors are hurt the most. It happens no matter what stock you own, if you don’t take profit you’re just plain losing out. But it’s not a conspiracy it’s just the stock market. Happens every day, has happened for centuries. If you took profit at or near $705 and have been waiting………………………. geez, look how much cheaper the stock is now! C’mon, it’s not rocket science. And it’s not a conspiracy. And you don’t have to be a daytrader. You simply have to pay attention how you invest and manage your money. And those who claim conspiracy……………………. you have no excuse. Profits on paper (buy and hold ) are useless. You only count profit when you hold it in your hand. Right? And yes, I understand the benefits of dividends. If you are strictly in it for the dividend then you can do better in other equities. AAPL is up a bit this morning. Product releases tomorrow and earnings on Thursday. Looks like the stock could tumble more, possibly 575? But I’m betting that it will ramp back up by years end. And that won’t be a conspiracy either! AAPL had reached $705! Stocks don’t go up forever, not even AAPL. Anyone who doesn’t understand this is beyond help. Check the history of investing. Not just this country but the last few centuries. Stocks go up, stocks go down, no matter how good or poorly run the company is. That’s just a fact. These folks who claim conspiracy must think that AAPL will go up forever ! It can’t happen. I believe Apple will do just fine between now and the end of the year from this point. Although it may still dip for a short time? It should do good to start 2013. But Apple has competition and needs to keep innovating. Perhaps the ITV will come in 2013? AAPL will need it. No matter how good the company, companies tend to level off at some point and begin trading sideways. AAPL will reach that point. And that won’t be a conspiracy either! Chill out! Take your investing seriously. Don’t let your emotions get in the way of good decisions. Never fall in love with a stock. Apple : the biggest company out there, it doesn’t need your help and it’s not your best friend. And you don’t need to defend it. Do like I do, buy and use all its products and be happy that they make them. But grow up, quit with the conspiracy crap. It’s just plain silly. It’s your money. Invest it wisely. Learn to take profit. That’s why you invested in the first place! Good luck.

  2. Don’t worry. Apple stock will be even dropped below 600 anytime soon. I expect that it will happen next Monday. APPL has been bubble. Now we have seen all bubble remove slowly. Target price $800? It is in your dream. Apple heyday is gone.

      1. At $300 per share Apple is essentially free.

        There’s $150 in cash in each share, so that’s an absolute floor. Then you have their other assets (land, patents, buildings, equipment, etc.). And you have the dividends. Then, when you then consider there are earnings of $50 PER SHARE, PER YEAR, you realize how stupid $300 (or frankly $600), per share sounds.

        1. You can’t teach trolls. But the rest of us agree with the logic of your assessment. Apple is undervalued at $609. There is no way that it will go down to $300 unless iPhones are proven to ca use cancer.

  3. Let me rewrite the article title to something a little closer to reality:

    There is no SANE reason for Apple’s stock price to be at $609

    The stock market is about human behavior. If the humans performing the behavior are ignorant, are sheeple, are suckers, are dupes, are desperate… they are not going to behave in a sane manner.

    1. I’m going to take issue with your human behavior statement.

      Many people quote that the stock market is irrational and that is what accounts for stock changes against common sense.
      The reason Apple stock loses value is that the brokers manipulate their clients to sell when they should buy and vice versa. I agree that the clients may be ignorant, sheep, dupes etc. That does not justify that there is concerted action to move the stock in one direction or another so that the interested players can make money.
      Deregulation, shorting etc have created a situation that moving stocks to certain positions can yield great profits for those parties. The potential gains have made this type of operation very lucrative and the current environment encourages this behavior.
      Nothing has been learnt after the credit crunch. The arrogance in the finance industry is still there and the average person is paying for it.

      1. Hey RAYMOND, could you go post this stuff over on the Yahoo finance boards where idiots actually listen to crazed FUDsters? I’d love to continue buying more AAPL at these ridiculously low prices.

        Thanks!

  4. Funny. Like all stocks, Apple drops precipitously every so often. Product releases and earnings reports. It’s nothing new. It happens all the time. It happens to many, many, stocks. Apple is the biggest so it gets a lot of attention. But it happens all the time to other stocks. Just follow the stock market. It’s not a conspiracy. It’s not the world against Apple. There are always people out there hoping to manipulate a stock if they can. That’s been going on for hundreds of years. Long before there ever was a United States of America. Sure didn’t start with AAPL. It’s old news. But every time there’s an earnings report coming this happens. Apple has great fundamentals so you can’t hold it down for too long. Not sure how this fourth-quarter earnings report will turn out on Thursday but I’m hoping for the best. This is absolutely a time to at least start putting your money back into Apple. Oh wait, you did pull your profit out when it reached its all-time high didn’t you? Oh you’re a buy and hold investor eh? Sorry bout that. You’re sure going to miss some big upside. Well, try to learn from this experience and do better in the future. Apple will be just fine. Just try to remember that in three months this will happen again. Ho-hum.

    1. Um, no, it’s not no hum. The market is manipulated in a significant way, where it can only really be taken advantage of by the manipulators. People are being cheated as capital from mutual funds are spread around, not to mention the gullible people that assume there is a rational reason for a stock to go up or down and act accordingly. Have fun playing your horse shit game, a lot of people have a lot at stake (not me, incidentally, as student loans can only buy me so much AAPL stock). This is pathetic, there’s a lot of people who actually produce something and contribute to society, but it certainly isn’t people managing/manipulating market investments.

      1. If you have a great idea and want to build it, where do you think the money comes from? It comes from the market place when you try to convince many people that your idea is good and will make them a lot of money. Then you hire a bunch of people to make it and create what you call real jobs. If you can’t create interest in your stock, your company will become bankrupt.

        Stock promotion is the engine that drives the economy and you seem to have not learned that in your very short history.

      2. Game? What game would that be? I’m simply telling it like it is. As Jack Nicholson said “you can’t handle the truth”! Why don’t you explains to all of us how the market is manipulated with something other than wild accusations thrown all over the room. And you’re right a lot of people do have a lot at stake. Including me. But you have to understand investing before you start. Or you will lose your ass. Sounds as though you have fallen into that trap where it’s easier to complain rather then do your due diligence and homework. That’s not good considering you are a student. And by the way, I paid off all my student loans. I hope you do too. But try reading and researching rather than just bitching like a little baby.

        1. Nice to hear from the 3l3c7ro peanut gallery. The game is the obvious manipulations that occur, that people rationalize because it is “expected”. It has nothing to do with doing “homework”; APPLs fundamentals have remained strong, untouchable, yet the stock has declined on made-up rumors. Thanks for your concern about my “ass” but I did not pull out of the stock, although many others were likely suckered into doing so. Good luck with the delusion that you actually contribute meaningfully to society by pushing a few stocks around. And thanks also for your concern about my loans, medical school wasn’t cheap, but I’m planing on paying them off.

  5. Apple is the currently the only company in which a tremendous rise in stock value (besides oil and gas) is almost certain. I’d say $1000 in 3 yrs or less. Especially if the economy turns around and people gave more money to spend. Apple biggest problem right now is inability to keep up with demand in a major way. Stock prices will shoot up to nearly $800 within one week after the iPhone 5 wait time decreases to one week.

  6. What pisses me off the most is that the hedge funds are running the stock market and nothing can be done about it. They’d all have to be working together to move a stock like Apple around like a feather. It’s probably good even for individual investors that have money to spend on Apple when these “buying opportunities” arise. It’s just annoying that the rich have such control and it’s done so blatantly. However, if the share price does run up as it’s predicted to do then this temporary drop in share price will be soon forgotten.

    It still burns me that if it is manipulation then the market is plain corrupt and small investors don’t stand much of a chance unless they’re really willing to take risks. With a company like Apple, there just shouldn’t be that much risk when the company is doing as well as it is. 13% is just way too much when both the company and the rest of the market is doing OK.

    1. I guess that you don’t know that people own hedge funds and you may even be one of them. If you own one and it is making you money, you are happy. If you don’t like it, you sell it and if enough people do the same, the hedge fund collapses.

  7. There is an emotional factor to the stock market, which we now see as a reflection of the turmoil in government. This is the time that you double-down and purchase as much as you can. Apple will continue to rule the electronic market at least for the near future, because they have passion and follow key principles.

  8. Apple’s fundamentals remain strong. Despite that, AAPL dived and dives at every whiff of bad news in the sector. Why? Manipulation and investor herd panic ? Perhaps but the biggest cause many have speculated, is high-frequency trading. Huge capacity computing enables high-frequency traders to transmit orders at electron speed and are geared to move the market, take a profit and run before anyone can recover. Edwards and Guptas are actually not a big part of the problem. They are FUD spreading bottom dwellers, but really do not influence the market – they are just annoying.

    The trader Greg Coffey, aka the “Wizard of Oz”, retired this year at age 41 with $700 million. Anyone who says there is no advantage to being on the inside and using these systems to gouge huge profits out or average investors, is blind.

  9. Wow… welcome to the stock market you idiots. The stock is not a reflection of the company, but rather a prediction of the company. No one cares what Apple is worth. If the consensus is that Apple will be worth $2, then that’s what the market will bear. Get your head out of your Apple asses and step into reality. It’s cold, but it isn’t that bad.

    1. I think that people do care Brady, especially those with Apple as part of their retirement portfolios. If Apple went to $2, they could survive for awhile, but not forever, aka RIM/Blackberry. Eventually fundamentals will correct the stock price up for Apple, but not before a lot of profit is taken by crimin… er… traders.

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