“Forget the Apple Watch and the iPhone. Susquehanna Financial believes Apple Inc. investors should focus on how much stock the technology behemoth says it plans to buy back when it reports fiscal second-quarter results later this month,” Tomi Kilgore reports for MarketWatch.
“Analyst Chris Caso boosted his price target for Apple’s stock to $150, which is 19% above current levels, from $145, while maintaining his positive rating,” Kilgore reports. “Caso also raised his iPhone production and shipment estimates, as he sees no signs that sales momentum is fading and is upbeat on the outlook for Apple Watch shipments.”
“But Caso believes ‘the most significant potential catalyst’ for the stock in the earnings report will be the update on Apple’s capital return plan,” Kilgore reports. “He estimates that Apple will generate $118 billion of free cash flow over the next two years.”
Read more in the full article here.
MacDailyNews Take: For the time being, unless Apple plans to buy back 90% of their outstanding shares, nothing is more important to Wall Street than iPhone sales.
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iPhone and Apple Watch sales do not seem that important to WS either. Since becoming a Dow component AAPL appears to be trending downward.
As is The case for most companies that have moved to the Dow. 😠
So why Apple joined the Dow for if it is trading downward. There must be a reason for Apple to join the Dow, anyone knows why?.
That’s a very good question!
Do you think that AAPL had a choice? It was done by the people who run the DOW.
Apple didn’t choose to be grouped into the DOW 30. The DOW is just a virtual group of 30 of the biggest stocks. Since AAPL is the worlds largest company (by value), it only makes sense they are included. Being in the DJIA 30, doesn’t move the stock either way. Profits, growth, and this stock buy back program are very good ways to move the stock price up.
1. Tighten up OS X and iOS to the max.
2. Make iCloud and iWork world class.
3. Get services ( iTunes Radio, Apple Pay, etc.) out worldwide.
4. Continue making Customer Satisfaction priority one.
5. Make the most kick ass computers.
6. Buy up great technologies, spend billions if needed.
7. Increase Dividends.
8. Buy backs.
Exactly!!!
Ignore WS analysts who are focused on their nebulous numbers. Focus an satisfied customers and great products. That has worked to increase the share price over the past 2 decades. Screw the short term “investors” who manipulate the share price up and down daily/hourly to pump money out of the system with their algorithms.
“Forget the Watch and the iPhone because I need to change the subject back to what everybody was writing about before last week.” Same old, Same old, Same old.
I don’t think Wall Street gives a giant F— about how many Apple shares are outstanding. If it did, Apple’s stock price would already be much higher, and its P/E ratio wouldn’t be laughably below pretty much every other tech company traded on the NASDAQ.
Just another indicator of why no company should pay any attention to Wall Street advice. That advice over the long term will drive any company into the ground.