Apple Shares Bounce Again
Apple Inc (AAPL) shares are up 2% today, trying hard to get to the $550 level. Everyday that passes the 52 week range improves for Apple as it moves further away from its 2012 $700 price. Can the stock return to greatness?
The Architect at TrendsandReturns.com had the right idea of bottom fishers finally snapping up AAPL thanks to its recent decline and attractive P/E:
Since the start of the year Apple (AAPL) is down 5% and 6 to 7% since the China Mobile (CHL) deal was announced. Thanks to the decline I believe buyers will come out and snap up Apple shares.
Apple's P/E is down to 13.45. Consider that Netflix (NFLX) has a P/E of 279, Facebook (FB) at 121, and Twitter (TWTR) at WTF. A better comparison for Apple would be Google (GOOG) who's PE clocks in at 32.5. P/E or Price-to-Earnings ratio may not get the attention it used to but for a lot of big and smart money it does. My speculation on a reduced P/E is going to entice investors to go long on Apple before the Q1 earnings are delivered on Jan 27th.
However AAPL is destined to be range bound until we hear earnings on Jan 27th. Apple needs a good conference call to move past the $550 then $575 range. Despite the amazing P/E Wall Street will not move AAPL shares until it believes there is respectable earnings growth.
The best analysis of AAPL's stock was done by Jim Cramer yesterday (see below). Long term the analyst Jim is talking up has a TP of $792 on AAPL:
Bottom line: AAPL may be at a bottom but until we earnings at the end of the month the stock is range bound.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Mario Draghi Reveals Biggest. Hockeystick. Ever! | ZeroHedge
- The Second Round of the Crisis Will DWARF 2008 In Size and Scope | ZeroHedge
- GDP Gives Market No Tail-Wind | Financial Sense
- NFIB Chief Economist Warns "Bubble In US Net Worth Has Reached Unsustainable Heights" | ZeroHedge
- Despite Tsipras Complaining That "ECB Has Rope Around Our Neck" Greece Finds Enough Cash To Make IMF Payment | ZeroHedge
- Markets Stumble After China Slashes Growth Target For 2015, Warns "Downward Pressure Growing" | ZeroHedge
- How the West Got Hooked On “Humanitarian War” | ZeroHedge
The most relevant financial news and articles from the Internets
- Sound financial planning is more critical for women than for men | Business Insider
- If you live in California, you can now buy car insurance with this Google tool | Business Insider
- Euro breaks $1.10 for the first time since 2003 (EUR, USD) | Business Insider
- Humans just made history by reaching an icy dwarf planet for the first time | Business Insider
- NCAA suspends Syracuse basketball coach Jim Boeheim for 9 games | Business Insider
- 10 things you need to know before European markets open | Business Insider
- 2012 Honda CR-V | BusinessWeek