This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple's Next Big Thing

In the first quarter last year, Apple earned $295 million, or 35 cents a share, on $3.49 billion in sales. For the full year, the company posted a year-ago profit of $1.34 billion, or $1.56 a share, on $13.93 billion in sales.

Despite the company's bullish forecast, investors were divided over the near-term outlook for its stock. With Apple expected to announce a new product -- possibly a video-playing iPod -- on Wednesday, one portfolio manager, who asked not to be named, plans to move from an underweight to a market weight position on Apple, saying they're "thrilled to get another opportunity to add."

"If I were a betting man, I'd bet that Steve Jobs pulls one out of the hat with the upcoming announcement," the portfolio manager said in an email. "Jobs can out-create any other tech person on the street. ... The nano or the product he introduces this week will be the gift to own this Christmas ."

Other investors were more skeptical. Apple could be helped by Wednesday's product announcement, and strong nano demand should be a boon to the company, said a second portfolio manager, who wished to remain nameless. And sell-side analysts are likely to show strong support for Apple's stock in the days ahead, he said.

But the portfolio manager noted that in the days after their recent disappointing earnings reports, shares of Lexmark (LXM) and Dell (DELL - Get Report) both continued to trade lower.

"If you went and bought Apple at $45, the downside might be $42 or $41," said the second portfolio manager, who plans to stay neutrally weighted on Apple shares.

In the quarter, Apple shipped 6.45 million iPods. In contrast, analysts were expecting the company to ship in the neighborhood of 7 million of the digital music players, and some whisper numbers were reaching as high as 9 million units.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DELL $0.00 0.00%
AAPL $126.37 2.53%
HPQ $31.57 0.25%
FB $83.20 -0.13%
GOOG $552.03 0.67%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs