“As Apple’s (AAPL) shareholders are anxiously awaiting tonight’s earnings call, there are two extremely important items to remember,” NYC Trader writes for Seeking Alpha.
“No matter what happens tonight, Apple is in good shape to tackle a general market that has seen an already rocky 2014,” NYC Trader writes. “If irrational activity causes Apple’s price per share to drop, since 30% of the company is made up of cash, Apple has an excellent opportunity to buy back shares at a lower price (less cash needed to purchase same amount of shares).”
“Additionally, 2014 should be a revolutionary year for Apple,” NYC Trader writes. “Shareholders have been eagerly awaiting new products, which should finally be arriving this year. Any forward guidance might not include the impact new products would have on Apple in the longer term.”
“In this article I will focus on one such new product that I believe will truly revolutionize a growing industry,” NYC Trader writes. “The way I see it, in addition to having the capability of being an alternative to PayPal, Apple might not necessarily be betting on an enormous revenue source from a Payments division. Instead, Apple could use the payments system to attack Google’s (GOOG) advertising revenue model that is currently in some form posing as a competitive threat to Apple’s hardware model.”
Read more in the full article here.