Is Apple stock undervalued or overvalued

Post on: 16 Март, 2015 No Comment

Is Apple stock undervalued or overvalued

The stock

Apple was a bullish stock all the recent years. Even after Steve Jobs the company’s stock beats it’s all time records.

But what can we expect in the future? Still there are a lot of questions.

Over the past year, the stock has been down 21.7%, but recent investors over the last three months have benefited from a 15.5% surge, with a breakout occurring recently after billionaire Carl Icahn disclosed his stake in the company. Is one man’s desicion so crucial? I don’t think so. Apple’s products will not become better if Icahn invest in Apple all his fortune. But fact that it’s changed moods and feelings of investors commuinity.

For the financial year ended Sept. 30, 2001, Apple’s worldwide revenues were $5,363 million. At this time, the iPod, iPhone, iPad, and iTunes did not even exist. 11 years passed and the financial year ended Sept. 30, 2012, company revenues have skyrocketed to $156,508 million. This revolution was possible because Apple was changing several major, global industries: music, mobile and personal computing. And this revolution became possible because of Steve’s comeback to the company. But now company is up and running and even without Steve’s presence products are still fantastic.

Next earnings report will take place on October 23. Experts are waiting for new records in sales.

New iPhones will be available in Italy. Russia. Spain and more than 25 additional countries On October 25.

Apple Retail’s new boss Angela Ahrendts has a long and respected career in the retail industry, especially due to the performance of British luxury fashion house Burberry Group plc under her leadership. She replaced John Browett .

I am not sure that experience in fashion is adventage for Hi-Tech business. It’s different worlds but who knows may be Angela Ahrendts do is job even better then tech guys.

Apple.com is less popular then Microsoft.com in the global rating. In US Apple is more popular but still it’s on the 24th place .

It’s not good for on of the tech leaders.

iPhones market share in US is still growing. Though it’s loosing positions globally.

I am bullish on Apple. It’s not undervalued but it’s still has potetial cause right now it’s the Mercedes of the mobile industry and this status is out of competition. But in the long run it’s very risky to own Apple shares cause this market’s inertness isn’t as strong as in other industries. It’s still very dynamic business.


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