Wall Street returns to buying Apple

“Apple shares recovered 2% after closing at a five-month low on Thursday,” Sue Chang and Greg Morcroft report for MarketWatch.

“Analysts at UBS — Steven Milunovich, Peter Christiansen, and John Roy — published a relatively detailed note on Friday, stressing that this would be a good time for investors to add to Apple holdings,” Chang and Morcroft report. “‘With earnings momentum bottoming and near-term upside EPS surprises more likely, we continue to like the stock here,’ said the analysts in a report entitled ‘Insights from visit to Apple.'”

Chang and Morcroft report that the UBS analysts wrote, “‘Management was bullish regarding its growth opportunities and ability to differentiate. Despite the recent management changes, Apple remains product- rather than financial-focused, perhaps Steve Jobs’ most important legacy.'”

Read more in the full article here.

MacDailyNews Note: Shares of Apple Inc. (AAPL) closed up $9.31, or 1.73%, at $547.06 on nearly double the average daily volume.

24 Comments

  1. “Fiscal cliff” or not, Apple will continue to make money. The last financial crisis was during 2008 and 2009. Apple dropped from above $200 to around $80 a share. During the worst of the crisis, Apple kept having record-breaking quarters, while other tech companies struggled. In less than one year, AAPL was back above $200 and kept rising steadily from there.

    Today, Apple’s cash ALONE is worth MORE than the entire company less than four years ago. That cash is Apple’s big advantage. If continued paralysis on DC causes another financial crisis, AAPL may take another short-term hit, but Apple’s huge cash reserve will allow it to cherry-pick key technologies, as other companies struggle financially. Apple will emerge stronger and more dominant than ever. Meanwhile, Apple will continue to be profitable, as demonstrated during 2008 and 2009.

    On the other hand, if the recent talk of cooperation in DC is more than “just talk” and reduces uncertainty enough to advert a financial crisis, AAPL will quickly recover along with the rest of the market.

    1. China iPhone 5 2012 debut, Xmas world supply intact, iPad mini,
      iPad 4, iPod nano, new iPod touch, entire new MacBook line,

      And then 2013…

      1000 before this time next year

      1. Perhaps he didn’t notice the recent 23% drop in share price. And were not in a recession and haven’t hit the fiscal cliff yet. So I’m with you, nothing is proof anymore. I have seen a few stories the last several days about iPhone five supply improving. A few more credible stories like that and we could be off to the races. But I think Apple will get hammered at least one more time before the end of the year. So be careful on any sort of run up, this isn’t the Apple of yesteryear. The company is still the same it’s just that it has a lot more people going for its throat than before. And there is competition out there.

        1. “23%” is nothing. About four years ago, Apple dropped about 60% (using $200 and $80 as the numbers). Then, it went up about 900% (from that low point) over the next few years. THEN, it came down about 20% from that high to reach the current situation.

          I consider Apple recession “proof” as long as the investor is not prone to panic and stays with AAPL for the longer term, until the “crisis” is over and Apple has emerged on the other side stronger than ever, with its competition weakened. Apple’s ongoing profitability and “crazy” cash position makes it possible…

            1. Touchy are we Breeze? Goodness, can’t even stand for anyone to have an opinion of their own? There is no such thing as recession proof Breeze. And I’ve probably been invested in AAPL longer than you’ve been alive. But it will go up soon.

            2. You know the internet is great, every dog is king and can spurt all they want, but let’ for once put our money wher our mouths are:

              I challenge you to prove that you uave been invested in Apple longer than I’ve been alive, or even longer than I have been. How about we back up your drivell with some real shares that the winner takes? Name the bet and the way ti verify and I’ll be happy to prove you a bullshit artist . Let’s go chicken.

            3. Like I said, touchy? Dog? Chicken? Down to name-calling are you Breeze? You said spurt but I really believe that you mean spout. As for me being invested longer than you have been alive, it’s just an expression. Although it could be true. Your reaction and comments certainly would demonstrate someone lacking in any experience. Drivel? Have I called your comments drivel Breeze? And it’s “you’re a bullshit artist” not “you a bullshit artist”. I don’t have to prove anything to you. But I believe you have demonstrated that you are the one that is full of shit to all of the people watching. You just can’t stand when someone else has an opinion can you Breeze? Sorry I pissed you off. Although that probably happens to you a lot. I guess you’re down a lot of money in AAPL and you just have to take out your angst on somebody? Next time Breeze, take a little profit when you’re way ahead. Or take a lot of profit when you’re way ahead. That way you won’t have to go through life so upset with your self. But if you’d really like to set up a bet, post your phone number and I’ll call and set it up.

  2. Well then, using that logic there are many stocks out there that are recession proof. Some that have done much better than Apple even. I love Apple stuff and it has done well the last few years. But honestly, you can’t base your theories on such a short span of time. Oil perhaps? Oil has been around for over 100 years. That’s recession proof. You know the old saying, “no one ever lost money investing in Exxon “. Remember, never fall in love with your stock. The consequences are dire indeed. Happy investing.

    1. > But honestly, you can’t base your theories on such a short span of time.

      A “short span of time” is all you get in the tech industry… and It’s not a “theory.”

      Apple prospered during the last financial crisis (2008-2009). What did Apple have in 2008? Zero debt. A modest sum of “cash in the bank.” A reliable Mac product line, which had recently transitioned to Intel. An established iPod product line. A fairly new iPhone product line.

      What does Apple have in 2012. Zero debt. A resurgent Mac product line, doing better than ever before. An established iPod product line. A mature iPhone product line, making the majority of available profit in the mobile phone industry. AND iPad, the future of “personal” computing. AND a cash hoard larger than the value of the entire company in 2008.

      > using that logic there are many stocks out there that are recession proof…

      Yes, there may be stocks that did better than Apple (in hindsight), but that does not make them “recession proof.” What I described above is what makes Apple a safe pick for a long-term investor, and something UNIQUE. Zero debt. A mountain of cash. Not one, but multiple highly profitable products lines that stayed profitable during the previous financial crisis and recession. The ability and risk-taking courage to “turn on a dime,” if necessary, with the cash reserve to mitigate that type of risk. And the cash reserve to TAKE ADVANTAGE OF a financial crisis to emerge stronger and MORE dominant when the crisis is over.

      I wish there was another company out there that I can call “the next Apple.” There isn’t. I’ll stay with the “real” Apple. I don’t expect another 30x return going forward, but I expect it to be a long-term safer investment during uncertain times.

  3. No investment will be safe in the US.

    Emboldened by his latest theft of the election, Oblabla communist organizer is going to accelerate his goal of weakening the US by all means.

    He is getting good advice from his main supporter:

    “Destroying America will be the culmination of my life’s work.” — George Soros

    1. Reading the posts here over the last few days I haven’t seen anything like “congratulations on your win” or “the other candidate ran a good race.” from anyone in the MDN community.

      The posts clearly show, in my humble opinion and from an outside perspective, members of a society of sore losers and arrogant winners. I think you can take comfort that no one else is capable of changing that except you.

  4. I took my iPad mini to a trustee meeting. I have never seen such a reaction. People were all talking of buying not one, but several immediately. They could not believe how “cheap” it was given the build quality, thinness, and weight. This thing is going to be huge; the stock price is now looking very very cheap.

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