“Whether you’re bullish or bearish on Apple, it is hard to deny the company’s most effective tool to driving its success: its ecosystem,” NYC Trader writes for Seeking Alpha. “Apple’s carefully crafted ecosystem is probably its most undervalued asset and a new future product will without a doubt be built around the same ecosystem that has made every one of its current products successful.”
“Apple’s revolutionary story, as we know it today, began not at the Mac or the iPod, but at its ecosystem, which is still in its ‘child’ stage,” NYC Trader writes. “A gifted child I might add.”
NYC Trader writes, “The market opportunity for expanding that ecosystem globally is quite enormous. Because Apple has extremely strong brand recognition, much cash, and loyal consumers, I believe other companies will be willing to “play along” by joining Apple’s ecosystem. That will create billions of dollars of cash flows in the longer term. The stock trades at a deep discount to comparables as is evident above. This should, in my opinion, correct in the future. While I would not recommend timing Apple’s stock for quick surging bounce (through options, for example) for the near term, I do believe that downside risk is not nearly what it is for companies like Amazon, Google, and Facebook. This in my opinion is a longer-term, even greater success story.”
Much more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]