“It would be unfair to say that Apple has got its mojo back this summer, since I’m sure the company and many of its fans would say it never lost it,” Chris O’Brien writes for The Los Angeles Times. “But as the tech giant prepares to release third quarter earnings Tuesday, it’s certainly riding some serious momentum.”
“One indicator is the stock price. A year ago, the company had seen its stock fall almost by half, creating a cloud of gloom around Apple and causing some whispers about the leadership of Chief Executive Tim Cook,” O’Brien writes. “Now, the stock has regained nearly all those losses. Cook has soothed the nerves of activist investors such as Carl Icahn who were threatening a revolt. Those rebel voices were quieted by an increase in share buybacks and dividends.”
“Samsung recently reported poor earnings that has observers questioning the South Korean’s approach to smartphones. Basically, many of the same concerns being raised about Apple a year ago are now being directed at Samsung,” O’Brien writes. “Part of the growing momentum comes from another wave of hype over new products. Conventional wisdom says Apple will release an iPhone 6 with a bigger screen in the fall. And the long-rumored iWatch is also expected. ‘In our view, tomorrow’s conference call is of much less significance than past quarterly reports, as we believe investors are more focused on the ‘Fab Fall’ launch (e.g., iPhone 6, ‘iWatch,’ etc.),’ wrote Brian White, a Cantor Fitzgerald analyst, in a note on Monday to clients.”
Read more in the full article here.