September 18, 2012
Apple Stock Reaches $700 A Share, People Still Predicting The End Times
Michael Harper for redOrbit.com — Your Universe Online
Earlier this year, analysts and investors were in a race to determine who could come up with the craziest forecast for Apple´s stock prices and market cap. While numbers like $666 and $1,001 were by and large dreamt up to catch someone´s attention, the spirit remained. This spring, the world expected a completely redesigned iPhone, brand new, redesigned Macs, an even smaller iPad and a life-changing, industry-over-turning Apple TV set, presumably all made with LiquidMetal.
Now, with only 3 and a half months left in the year, we´ve seen slightly upgraded Macs (and that new, Retina´d MacBook Pro), marginally updated iPhone (only in terms of aesthetics, mind you) and just hints of an iPad “Mini” release. The Apple TV, it seems, has been pushed into 2014. And, it turns out, announcing a major update to your most popular product (design styles aside) and selling more than 2 million pre-orders in 24 hours can give your stock prices a real shot in the arm.
After the final bell rang Monday on Wall Street, shares of APPL finally reached an all-time high of $700 - the very last trade for the day went for $699.80. Apple announced their latest iPhone 5 on Wednesday, and though the tech press and some Android/Google loyalists quickly panned the new smartphone (something of a tradition following any Apple announcement) Apple shares began to climb their way towards that elusive $700 mark.
According to ValueWalk, when Tim Cook strolled on stage Wednesday to kick off the press event, APPL was selling at $666.85. At the end of the day, stock in Apple was selling at $669.79. Shares began at $694.65 Monday morning before both Apple and AT&T issued their press statements about their record breaking weekends for iPhone pre-orders; 2 million all told in 24 hours with AT&T announcing simply “record setting” numbers.
Now, analysts are busy making predictions as to how many of these new iPhones Apple will sell during opening weekend, which begins on Friday.
One popular Apple-focused analyst, Gene Munster, issued a note to investors Monday in which he predicted the sale of 6 million phones during opening weekend would be a “worst case scenario.”
Munster, of Piper Jaffray, instead predicts the new iPhone could easily reach 8 million units in opening weekend sales, a number which would double last year´s iPhone 4S launch, which itself was responsible for breaking records.
Of course, there can´t be good news for Apple without a few forecasting darker days to come, or at least playing on Apple´s good fortune to hint towards bad days ahead with doom-saying headlines with completely different stories to tell.
CNET´s Eric Mack writes a story with the headline “We now know the iPhone and Apple jumped the shark in 2011” wherein he suggests that, despite the record numbers, Apple won´t be able to continue innovating like they once did. Why?
“The reason the iPhone 5 introduction didn't wow many people is that Apple has basically perfected the smartphone, at least on the hardware side of things.”
Another headline from Business Insider reads “Apple´s best days are behind it.” The money quote here, however, reads: "So are Apple's best days behind it? Is the company losing its edge?" No, says Jay Yarow, Senior Editor at Business Insider.
Then later: “Yarow thinks Apple's best days may behind it, but only because those days have been so mind-bogglingly spectacular. Apple has plenty of good days ahead, Yarow said. And they'll start with the amazing launch for the iPhone 5.”
It seems no matter what side of the fence you straddle, Apple still comes out on top. Not bad for a company who pushed out 2 “disappointing” iPhones in a row and remains ever in danger of losing to a company who was found to have copied Apple´s design.
Not bad at all.