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I need help. Im doing a contest, and at the moment i need a business reason why should i invest in apple stock.

2007-02-22 03:48:14 · 5 answers · asked by Anonymous in Business & Finance Investing

5 answers

S&P analysts investment rationale:

We project revenue growth of 26% for FY 07 (Sep.), following an increase of 39% in FY 06. We think revenues will continue to benefit from growth in AAPL's refreshed iPod line, but that rates should moderate as demand for the company's new handset device is likely to cannibalize sales. In addition, we see the core Mac line registering solid growth in FY 07, aided by the completion of AAPL's transition to Intel chips. Finally, we anticipate other new product launches, including a new operating system and AppleTV, along with a further expansion of the company's base of retail stores, to provide incremental benefits.
We believe that FY 07 gross margins will widen to 30.7%, from FY 06's 29.0%, as a result of higher volumes, AAPL's product mix, lower component costs, and the potential for higher average selling prices for Macs. We expect results to be aided by the company's net cash and short-term investments balance, which totaled nearly $12 billion at the end of calendar 2006.
We forecast FY 07 EPS of $3.34, up 47% from FY 06's $2.27. Both totals include projected stock-based compensation expense.

We believe AAPL continues to benefit from its strategy of providing superior and differentiated products. Mac sales are outpacing the overall PC industry by a notable margin, while also enjoying higher average selling prices. Moreover, we think AAPL's recently announced handset product, dubbed "iPhone", will be accretive to earnings following its expected June release.

2007-02-22 03:56:38 · answer #1 · answered by Louis G 6 · 1 0

My idea is that Apple will likely stay round an similar cost and not at all pass a lot. it isn't dropping money, it don't have debt. notwithstanding the biggest driver to it really is upward push became new products and boost, and albeit no longer some thing truly thrilling or new has or will likely come out. competition are waking up, and are popping out with as reliable or extra appropriate products for far less. customers are nevertheless there to pay for the genuine classification Apple prices, yet no longer as many are prepared to take action as competition jointly with Google and Microsoft come out with stronger structures. probability is Apple as a employer will be rewarding, yet percentage cost will likely stay very on the point of the position it really is, if no longer particularly up or down. There are extra appropriate boost opportunities accessible, so if I were you, i'd promote and make investments elsewhere. in case you do not comprehend what you pick to make investments in, conserving will likely no longer harm. It does pay a (albeit small) dividend. look elsewhere and at the same time as your waiting promote.

2016-12-04 19:19:06 · answer #2 · answered by ? 3 · 0 0

The ONLY reason to ever invest in a stock is if it has indicated a propensity to rise in value. AAPL is currently in a sideways consolidation pattern and I would not be a buyer here. HOC (Holly Corp) look like a better option.

2007-02-22 03:58:22 · answer #3 · answered by AZ123 4 · 0 0

Apple's stock is doing phenomenally well.

2007-02-22 03:58:47 · answer #4 · answered by Anonymous · 0 1

Apple is selling good products that people millions of people use.

2007-02-22 03:55:37 · answer #5 · answered by b c 3 · 0 1

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