Over at GigaOM, Kevin Kelleher has written a nice post about Apple stock and where it could potentially be headed. It seems like a pretty even-handed analysis as he compares Apple’s performance against other noted companies such as Amazon.com, Autodesk and Google. Here is the key bit that I happen to agree with 100%:
“Apple must fall some day – there’s no debate there. The question is when. The stock is nowhere near as expensive as, say, Amazon. The company and its CEO may both be overhyped, but there remains so much promise in Apple’s near-term future – early iPhone sales, Leopard, increase mainstream comfort with Macs – it’s not likely to come for a few quarters.”
Although I don’t pretend to understand how Wall Street works when it comes to my favorite fruit company, it does seem more often than not that the stock rises on rumor and announcements and falls on facts or events. Yesterday’s $4.59 increase in AAPL price thanks to Apple’s battery announcement is a perfect indicator of this. I think the price will continue to rise right up until June 29th, when investors will take profit with the launch of the iPhone. Depending on sales (or the prospect of sales), it will most likely start heading back up once again. This is all just my personal opinion however, so take it with a grain of salt. Check out Kevin’s post if you are interested, it’s worth your time.
Disclosure: Being the huge fan boy I am, I do own stock in Apple. I’m just sayin’.